Legislative Joint Auditing-Counties and Municipalities

OK. Our first order. But money to go through it first adoption, the minutes first, OK. Has everyone looked over the minutes. For the last meeting If we have, will someone make a motion to accept the the minutes of Representative Carol Dalby makes the motion that we accept I need a second. OK, Senator Camera Hammer 2nd, all those papers say ah. say no, OK. Um. Senator Wallace. Oh, we'll get to that one. I mean, it doesn't matter. We can go right here, Mr. Chair. It would be good if we could, Senator Wallace has got something really important he needs to go before us because he's got to leave. Well, thank you, Mr. Chair. Appreciate it. Mr. Chair, this concerns a city of zinc. Um I've talked with the municipal League, uh, the City of Le has hard Um, can, can you hear me? hired a CPA, which is one of the requirements. I've talked with the audit team today. That I'm going to recommend that we approve their report and the reason I'm doing this is a city of Zinc was a town of about 90 people. The the mayor has a serious heart condition. Uh, And we probably don't need to have him come down here and I've, I've been assured by just believe that they're on top of it, and I think that our audit people agree with me. That's correct. So I'm, I'm, I'm making a motion that we approve the report on The City of Linc zinc. What page is that? Page 20 Page 2020 44. I can if uh if it pleases the committee, I'll go ahead and just present that one on page 2 under reports referred to the prosecuting attorney and the attorney general's office. We've got the town of Zinc 2023 under the mayor. The town was paid the town paid, uh, over $1000 to officials and council members for mowing, repairs, and miscellaneous labor without authorizing ordinances and non-compliance with code. This is a repeat finding from the previous year. In addition, 3 checks were written to the mayor were recording the disbursement journal is being paid to different payees. The budget was not adopted by ordinance or resolution is required by code. This was a repeat finding in 2017. The, uh, as Senator Wallace stated they have hired a CPA firm to take over the books since the recorded treasurer has resigned right after the exit conference. And uh the PA will on the first finding with the uh Lady Party ordinances, uh, so that's the The findings in question, Senator Wallace, do you need to go ahead and explain that a little bit better for us, sir. No, I think he did. I think he got it. So Mr. Chair, I, I think I did. Yeah, OK. So. Yeah I mean, we have a motion filed. We have a second. So move without objection. OK. All those papers say ah, OK. Thank you, Senator Wallace. Thank you, sir. OK, uh, the update on delinquent private reports. Well, we're gonna do one thing first. Uh, we want to take a moment and recognize two people that have given great service to the state of Arkansas, and this will be their last meeting, so we just wanted to take a moment and recognize Ms. Hodges and Mr. Fight. Appreciate everything for all y'all done. Thank you so much, Senator Crow. Well, Carol, we're, we're gonna miss you. I'll promise you that, um, and, and Lanning, you too, sir. But we've been around a block a long time after we landed. Yes, sir, um, adoption of the minutes we got that update on delinquent private report. Thank you, Mr. Chair. We started out with about 150 water and sewer departments that needed to submit us a report at the end of June of 24. The, the list that was in your package were down to 63 uh 47 of those we have engagement letters on, uh, another 13 we have written responses and they have a plan and we're down to 3, which is on the 2nd page, which are BlackRock, Dermott, and Russell that have not responded to. Two letters that were sent to the mayor and the recorder treasurer and then a round of certified letters that were mailed to all the city council members, mayor, and quarter treasurer and clerks on November 5th. Um, Act 453, which amended code uh Arkansas annotative 104 412 allows for the committee to withhold both general and street fund turn back. Um Until this until they become current. So, um, That's the That's the question before us now. What, what's the next step with these 3 and these 3 entities. So, so it's my understanding that They've had about 22 plus years to to make this right are reports that were due in the end of December 31st of 22. So the law says 18 months when they become delinquent, which would have been June of 24 and now they've had additional 5 months of um Us trying to remind them. Representative Jean. Chairman, on my report has BlackRock, Dermott, Russell, and Thornton not responding. Thornton and, uh, thank you, sir. Thornton and cotton plant, um. They're all their certified letters we were notified this week they were returned, so we reached out to them individually, uh, cotton plant, their issue, if you'll notice on there, they had some financial issues with their CPA. They resolved that this week, so they've got, they're in process of getting their audits done. Thornton, we reached out to them and they had a, uh, they got together earlier this week and they've reached out to the CPA as well. So they are, they, they're now on the written plan list. Thank you. Thank you, sir, for reminding me. Senator Hammer. Thank you, Mr. Chair. Would, would staffent engagement letter exactly what is an engagement letter? It's a contract with the CPA to do the to actually do a signed contract. With the uh CPA firm with the city to do the report. OK, so let me ask you a question about Rockport then. So apparently there's still CPA for 2019 report, so they will not start any more years. Does Have they have, what's their status? The CPA actually called me on Rockport and said he would work with them to get it done. Now, that's their version of a written plan. When we get back there, we will update each of these each time we go back, so every year we will revisit this to see if they have it and if we get to, of course the clock, the calendar turns over at the end of June. We will have the same issue for the 23 reports and then they'll be right back on the list again if they haven't corrected it by then. OK. And then my question would be, is anybody in the room from The 3 in question in Black Rock, Dumont, or Russell, there any representatives in the room today. Not that I'm aware of. They weren't invited. We were instructed in the last meeting just to send certified letters. Now that was the precedent that was done for the cities, if you remember bauxite, Augusta when they didn't have their audits, so we invited the whole council member down before we, before the committee went to that, but that was, that's the only other. Example of how we've approached this, so right, so these three cities knew that this was coming up for discussion today, and they were, they were all, they were all sent certified letters and and the the vast majority of them were not returned, so we're under the impression that they got them. OK. And those letters stated that this would be a subject of discussion in this meeting. OK, thank you. Motion proper time. OK. Mohammer just hold on more discussion, uh, so my understanding is our next meeting is May 8th. That is correct. So if we kick this can down the road, they're looking at. 6 months. 6 more months. So, uh, Senator Hammer, you have a motion. Any other discussion? If I remember what we are. I, I think I almost could use the word required to do. Um And given the fact that everybody on this list has complied. The appropriate action to take would be a motion to withhold their turn back money until they submit a report and I guess my question. In that motion is if we do that and then they get those reports in with that automatically Uh, relieve Or stop The action of their turn back money. I'm not an attorney, but we could check with Ms. White, but I do believe that's how it's written. It says until the reports are current is how the the law reads, if I make a motion to withhold their turn back money. And uh they're all of a sudden they get on the stick and get it done, and 2 months from now they send that in with that automatically trigger them being able to get their turn back money at that point. That is, that is my understanding, but staff's gonna run check with Michelle. No, the way, the way that this law is reading, it reads unlike the other turn back laws we're gonna get to. This is the 1st 12 months is actually escrowed. So they would actually get, if they get it done within the 1st 12 months, they'd get all their back turned back sent to. Now the municipal, I mean the uh the water repayment doesn't read like that. It reads that every month there are not paid in full, that money's gone and there's no way to get it back, right? So if we pass a motion that says we're going to withhold the turn back money and it takes some 60 days to get an engagement letter to you and and engagement letter constitutes meeting the requirement in this case it says current report. So again, that would be M White would have to. Or somebody would have to The pin on that as far as what constitutes. I mean, I, we kind of give these others that same credit, so we're interpreting it that way. So I would assume Mr. Chairman or chairman's, could we maybe Are they going to get Ms. White? They're going to check with you, yes sir. Could we, could we wait? I'll, I'll hold my motion till she gets here because I think I'd like to get those questions answered. It might have some bearing as to, yes, I think move on to the next subject and we'll come back to this. OK. That'll be fine. Senator Kim, once she comes back, we'll get that report. Thank you, sir. OK, uh, discussion of Act 709 of 2021, repayment of turn back funds for the town of Gilmore. OK, uh, if it pleases the chairs, I'd like to go ahead and present the City of Gilmore report. It's also here on page 9. We can do this all at one time. OK. Under previously deferred reports on page 9, we have the town of Gilmore. Uh, 2023. On the mayor and reporter treasurer. Schedule one of this report shows gentle fund balance a little over $5500. In addition, it was brought to our attention that as of December 31st of 23, the general fund owed a significant amount to the IRS for taxes owed as well as a balance due to the street fund and the fire fund. Has shown on note 5 of Schedule 3. When these outstanding amounts are considered. The general fund has a deficit fund balance of over $28,000. It's a repeat finding back in 2019. Uh, additionally under the recorded treasure, restricted street fund monies of $2100 was expended for unallowable purposes. Property taxes of almost 800 and state aid of over 6500 for highway funds in previous years owed to the street fund were not transferred during the engagement period as required by code. The total amount due to the street fund at 123123 with a little over $9500. The city council passed the ordinance 22. 9-13 to repay 10% of general fund revenues to the street fund each year until the ballot was paid in full. However however, only 1.6% of revenue was paid during the street fund in 2023. This is a repeat finding back to 2006 I believe the mayor, uh, Bruce My, could you, Mayor, could you And, and I guess this is our secretary. Could y'all identify yourselves, sir? Yes, sir, I'm Mayor Bruce from the city of Gilmore, you know, I have my assistant system with here with me today in a on the To turn back money uh to pay uh street bank, um, when we first started out I didn't quite understand how that 10% supposed to be going, but the altar lady, she came in, she explained to me, I understand everything now, you know, I have been doing a whole lot to get this straightened out, but if you don't mind with it my sister talk and she can tell you what all I have did to try to uh get this stuff did better. Mayor, can I ask you a question, please, sir? Yes, sir. With this situation, sir, there hadn't been, you were supposed to transfer money from the general fund to the road fund, but that has not been occurring, isn't that right, sir? Well, we have been transferred, but I don't, we wasn't doing enough because I didn't understand the 10%, but you know, like I was saying now, now I understand because the lady she's 7 now she spoke with me, she talked to me and told me exactly what I need to do and I do want to get in compliance with doing exactly that 10%. That's why, you know, I was actually, you know, could my assistant speak so she can tell y'all what I did to try to make this stuff right. Yes sir. Well, I'm sure there's some questions started today because what I'd heard that, that we actually weren't repaying the, the street fund back, sir, and which is a pretty serious thing considering that it's supposed to be an automatic situation and we gave a 10%, uh, you know, each year that was supposed to be paid back into the, to the road fund from the general fund and, and I'd heard and uh maybe I'm wrong, Mr. Archer, but the money has not been repaid. OK. Excuse me, could I speak? What he did was the auditor came in and spoke with them in September and uh I was sitting there with them and they're not, they weren't knowledgeable that 10%, it was 10% of the total revenues that was deposited into that account, total credits, so the deposits that they have been putting over were very small, so starting in September that $9500 that they owe as of today, they owe $6700 and some dollars. He's been doing that 10% as after the auditor left, so September he did 10% which was like. $1100 in October, he did his 10%, which was $800 in November he did $1500 which was over the 10%, so now that he has an understanding of what he is supposed to do, he's doing that, but at first they did not have that understanding of that it was the total revenues of general and the auditor that came in, she sat down and she explained that and I turned around I was like, you want the total? she said the total revenues that hit general fund, it doesn't matter where it comes from, it's not just the funds that's coming from Crindon County on uh for street it's the total amount. Yes ma'am. It's 10% of the amount of money that was actually spent that was supposed to be spent on the street money that came off the half cent sales tax to all cities statewide and that's quite a bit, that's quite a bit of money. How much would that be, Joe? Uh, they're turned back for total street fund turnback was almost $15,000 14,810 dollars for 2023. Yeah, so they were 9500 delinquent and as of today they, you know, like I said, in those 3 months now they're at 6700 in delinquency, so he's paying that back. What, what about Joe? Well, the, the, that's we haven't looked at 23 yet so I can't speak on that. I know that, uh, we stopped by this week I believe Miss Tiffany stopped by this week and uh talked to y'all, called you anyway, and she did verify that y'all were paying some back, but we don't, we haven't put a, we haven't audited those figures for 22 after the ordinance was paid, the amount due actually increased by that $2178 because they misspent some some additional money during 22, um. And when the ordinance was was passed to repay the 10%. Senator Hammer, do you have something you need to add to this, sir? Yes, sir. It's, it's actually on a different finding within in the report. So do you kind of go ahead and do that or do you have somebody else wants to ask questions on the subject you're talking about. Alright. And ma'am, I'm sorry I did not get your name. I'm sorry. My name is Trevina Jefferson. All right, thank you, Mr. Jefferson. I, I noticed in the report that we have in front of us, it says that there was 4,056 paid from the fire equipment training funds were not repaid and as of December 31st, 23. was paid, so has that Has that been cleared up or is that still outstanding? That is still outstanding. OK, and the unallowable expenses, what, what were those expenses? Do you know right off because I don't see in my report where it says what they were just that they were unallowable. Unfortunately, I don't know what those unalliable expenses were that the city did at that at that time. OK, alright. Uh, do you know what the plan is as far as paying those back or have y'all addressed that yet? Yes sir. The plan is that once I get those delinquents that the delinquency cleared up, which it should be cleared up by April, then they start playing back fire and fire should be cleared up, uh. but I say roughly about 3 months after that. OK, all right. Did the staff identify with any of those unallowable expenses were. Ms. Candace is looking. OK, and I'll, I'll just go on hold till she can find it. Thank you. OK. waiting, aren't we. Senator Representative, uh, I just have a motion at the proper time. OK, sir. Are there any other questions? Senator Stubenfield. Thank you, thank you, Mr. Chairman. Mrs. Jefferson, can you tell me what the balance is as of today in the general fund. I don't know what his balance is as of today what's in his general fund, but I can't tell you the balance is delinquent off of the delinquency of the 9502. So I couldn't tell you what his bank account balance is, but I can tell you what that delinquency balance is. What is the delinquency balance? No, she's returning to the $6700. That's they still know what they still owe to the street fun. Oh. The delinquency balance off of the 9502 that they was written up on on last year is now at $6,991.03 a street that's old. OK. All right. Thank you. Thank you, Mr. Chairman. Representative Dalby. Thank you, Mr. Chair. um, Mr. Mayor. I'm curious on this very first paragraph, it says the general fund had a balance of 28,000 negative balance of $28,254. Are you now back in the positive. This says that you're in the negative by nearly $30,000. Can you explain that we shouldn't be in. Then Mr. Archer, can you explain these money were expended this year. you wonder what what the water in the street. OK. Mr. Archer, can you explain it it says I guess they're in the negative. It says the general fund had a negative balance of $28,254. We did not have any money in the bank. $5500 in the bank. But if you calculate the $9500 they owe to the street fund, the 44,000 they owe to the fire fund and the money they owe to the IRS, then it becomes negative. But these funds, but these financial statements on a cash basis because it's it's a, it's a It's not full accrual. So that's if they paid off all their debts they'd have a negative 28, but the actual bank balance and that's outside of uh the end of 203. OK, thank you very much. Mhm Chores or something else or we're just waiting on answer. Yes, we're gonna, uh, Miss Gatway is looking to see what that money was spent on in 203. No. What does identify what the album expect so they, they had a prior imbalance of 4000. They transferred in current year 2030 $950 to water sewer. To offset expenditure, but then they paid some water or some fire spin so we offset that so it went up $210 the prior year. I don't know what the previous 4000 word, but I can dig and find that out. But this year it was just a transfer of water. Hm Mr Chairman, I, I don't. need to, I think there's a A motion pending out there. I'll, I think we'll address that later, not take up the committee's time now. Thank you. OK, with motion Representative Lanning. You had emotion. Thank you Mr. Chair. May I make a statement first? Uh, this problem with uh Gilmore goes back to 2006. And we hear it over and over again. I've been here 10 years and it's, yeah, we're gonna fix it, we're gonna do something. We passed some legislation that gives them an opportunity and a framework in which to pay it back in. But also in that framework says if you don't pay it back, Then the full amount is due, and if you're not able to pay it, then you lose this turnback funds. And uh Uh, street department. And uh I would like to make a motion that reinforce that at this point right now. Yes, sir. And what would Representative Blaney so that everyone will know we're talking about straight money, turn back, and that's all that's all OK. Is there a second, All those in favor say aye. OK, so that's so we will staff will notify the treasurer and uh the way the law reads them within 30 days, they will verify with us that that's the, the findings haven't been corrected, and then the letters will be sent out that the all highway revenue coming from the state, that will be all three phases, the 4 lane, the fuel tax, and the turn back will be withheld until uh the city notifies us that that had been paid in full and we'll go verify that and get it. reinstated. OK. Yes, ma'am. OK. Representative Carolyn. Thank you, Mr. Chair. Um, reinstated, but it won't, you won't pay the back pay ma'am. This is not the law does not allow for escrow of these funds under these conditions. It will be just start at that point forward. Well, that's what I thought you said earlier, but I wanted to make sure I was understanding. Thank you. I need. One more point clarification, can we decide whether we're gonna file this report or defer it. Staff recommends we file it because we will follow up on this every time we go there. Got a motion for a file on a second already all in favor. Thank you OK OK. That will Thank you, thank you for coming down. Appreciate you. Yes sir. Thank you I got information on attorney. OK, what, what, we're going back what you were doing. You don't want, you're right here. Yeah. Right here on. OK. Central Cole, would you come back with us on, on uh section B Section C, OK, uh, Senator Hammer, they have to get to a letter and get a plan and then they would get it turned back on. So it is only until they start the action of the plan and then it gets turned back on. That be engagement letter, correct. So if they get an engagement letter. Question, if you don't mind then in the meantime, and this is money that they would not be able to recoup. During that time, it's, it's, it doesn't retroactive back. No, this is escrow, the, the water, uh, I mean, yeah, the water audits, that money will go into escrow for up to 12 months and then if they get that letter, then they'll get their money back and continue to get their additional future money, but after an additional 12 months, then it's redistributed to the other cities, right. So bottom line is we make a motion or I make a motion to withhold. They turn back money. That that would um that would be in effect until they get an engagement letter to you and then that would trigger turning it back on. That is correct. Yes, sir, and Senator Hammer, can I ask you, would that be the the turn back money concerning the road portion? No, sir, that's. That's OK, yeah, so, Mr. Chairman, at the time, I've got a motion on Um, Do it all three, I guess. I don't, I don't know there would be any reason to split them out, could do all three. Yeah that sounds good. Any discussion on this? I have a second on this motion. Got a 2nd, all in favor. Motion passes. OK. Do we have to file that or no, so those are our reports. OK, um, his staff may I staff gonna notify them of our action today. I mean, uh, how do, how do they get notified so they can as soon as we sent with the, the law requires us to send a letter to the treasurer and then we'll send a letter to all the uh council members, mayor and court treasurer, all officials, certified letters to them Monday, probably Monday or tomorrow we'll get them started tomorrow, get them in the mail Monday unless somebody's watching live stream, that's the way they're going to find out then. OK. Thank you Yes. Thank you, Senator Ham. OK, we're now in a discussion of noncompliance with municipal accounting law of all trials. If it pleases the chair, I'd like to make the same request I did on Gilmore and go ahead and turn to page 24 and we'll present their report as well. OK. Under reports with repeat findings on page 24. We have the town of Oroft for 23, 22, and 21. the mayor and McCore treasurer. Counting procedures for municipalities are set forth in Arkansas code annotated 1459 101 to 119. The town was a non-compliance with these codes and other accounting procedures as follows. Invoices and supporting documentation were not provided for disbursements. Payroll records were not provided. A detailed fixed asset listing was not provided. Bank accounts were not reconciled. number receipts were not issued. Cash receipts and disbursement journals were not established. The recorder treasure did not submit monthly financial reports to the council, and annual financial statements were not posted. These findings range from being repeated from 2011 to 2019. We have, um, Mayor Bobby Carroll and recorder treasurer Judy Smotherman here today to answer questions. Thank y'all for being here. Just go ahead and have a seat. And maybe this, you see, there's 12345678 different areas that's look like in problem. Maybe you could tell us where we're at at this point as far as making corrections on what has happened so far. Please identify yourself for the record. Yes, sir. Go ahead. He mentioned your name, but go ahead it Treasury quarter. The invoices and supporting documentation, we have. The payroll records that were not provided are now being properly provided and that action is corrected or correcting at this point. A detailed fixed asset listing was not provided. I have that on my desk. It is available. Bank accounts were not reconciled. No, sir, I did not. I do now as soon as I get the bank statements. pre-numbered receipts were not issued. Yes, sir, or sir, they are. I have 12 accounts, all of them have a separate receipt book and they're used according to the account it's for. Cash receipts and disbursement journals were not established. They're established, they were not up to date at that time. That is being corrected. The recorder treasure did not submit monthly financial reports to the council? No, I did not. I simply gave them the most current bank statements. As I was trained to do when I came on board, now I will do financial statements to them for each account. Annual financial statements were not posted. No, sir. They will be. The first one is due in March and it will be posted in 5 places or if necessary in the newspaper. Uh, minutes were not provided, yes. They were available, but I wouldn't, I did not give her the binders. They are kept. They're kept by the monk. And they're in binders. And they're available for anyone to see. Budgets were not provided. They are kept after approval, they're kept in the binder with the minutes, so we do have those. I'm working on the budget for next year at this time. So If you have any questions, then yes, ma'am. We do have questions, ma'am. Thank you, Senator Hammer, go right ahead, sir. Thank you, Mr. Chair and thank you all for being here today. We appreciate you showing up and answering questions. Uh, ma'am, how long have you been in your duties or in your position, please. 5 years, 5 years, OK. And I guess what I need a little help understanding is, did, did you know that these things were supposed to be Being done And they just didn't get done or how is it that such a a long list of findings occurred. Or is there any background or back information you'd like to give us to help us understand tended to do as I was trained to do. And therefore The way it was done does not work. OK. I have to establish a new way. And do it properly. And, and who was it that trained you? Amy. OK, so as far as, uh, have you had any direct communications with the municipal league as far as getting training from them or how is it that you You've got your new training. Not until today and I spoke with Mr. Kreacher, and he told me there is help available. Ma'am, you please speak into the speaker with Mr. Critter today and became aware there is help available and I will request it. OK. All right, thank you. Joe. Let me ask you a question. Upon what you guys have looked at, what do you see that's changed that would clear this up? Well, the, the law allows for a 60 day, I guess, grace period, so you know if if the if the will of the committee, they go on the clock for 60 days and we would go back out as soon as she caught the recorder treasurer called us and said she was ready, we'd go out and verify this and if, if it's if it is that she says, then we'd report back in May and uh with the report would be filed and would be looking forward to the next engagement, but we haven't, I mean, not disputing. Anything Miss Motherman said, but we haven't been there to verify it yet. OK, well, there's, I'm sure there's a possibility that something could have happened when we dropped the ball, but at the same time they're gonna come back and they're gonna check, ma'am to make sure everything is right and they'll report back to us if we got a motion in a second and all that. Once we do that, then I'm guessing, Joe, when will you start this process? I mean that's up to the committee. I mean, we're after you start it today, 60 days from now will be February 5th, but we, we don't meet again until May, so technically they have until until the May meeting before we can report back to to to report back to the committee whether or not they're in compliance or not and then it's additional 60 days would be given or at that point in May 50% of turn back would be with, would be escrowed and then additional 60 days and then 100% would be uh redistributed at that point, they're still not in compliance. If they're in compliance in May, um. We just filed the report and things returned to normal. Senator Hammer. Question for staff. The um If we, if we wanted to hold this report over. Then it could be held over till our next meeting, which would be May. I mean, it, it could be held over that long. That's if, if we defer it, that's when all the deferrals today will be held over to May. That's the next meeting. So that's 60 day even though the law allows for 60 days under these circumstances it's actually gonna be 6 months. So are we comfortable with that overall, can I ask her a question, please? Yes, go right ahead, ma'am, during the, during the time of 5 years that you've been in office, um, Did the Did the auditors ever come and visit with you or Yes sir, and, and, and whenever they visited with you, were you ever made aware during those visits of these things that needed to be corrected. Yes, and we worked on them. OK. When did that happen or how long ago did that happen? The first one was 3 years ago and then this past fall, Miss Milton talked with us. OK, so how is it that if you were talked to by the auditors 3 years ago, that these are findings that are, that are, are still here. Did you start working on them 3 years? Yes. But in a small town, sir, you tend to have lots of interruptions. Yes, ma'am. And When you're a small town, you tend to try to help them, but Our goal is to correct all these. Citations. Yes, ma'am. OK, thank you. OK. Is there anyone else that would like to ask a question because this is a fairly complex situation we're in here. OK. OK. Representative Carolyn, thank you, Mr. Chair. Ma'am, do you feel like you're gonna be able to bring things current with me a lot of time. Yes ma'am. It's not, it's not overwhelming amount of work. It is an overwhelming amount that Ms. Milton is going to help me, and I'm gonna ask for help from AML. Thank you. OK. need a motion to accept this if we do, it's gonna be uh May of next year when this comes out, but they are 60 days, yeah, there'll be 60 days before this will actually come in to the for the auditors, but actually before we actually hear all this, it's gonna be May of next year, isn't it? Yes sir. So the question Is it a motion to defer? Is that what we're really looking for? I think we're looking for a motion to put him on the 1459 117 track which starts the clock on 60 days. OK, I got a got a second. All those in favor, say ah. OK. All those folks say no. All right. Thank y'all for coming. So. Just so, just so you understand that they're gonna send you a letter and in 60 days, they, they're gonna, you have 60 days to, to tell them that you're ready. They're going to come out and verify that you've got everything done. And so 60 days from now, everything has to be done. Or sooner or sooner, yeah. And thank y'all. It looks like that you're trying to be serious with it and which is a very important thing because those were fairly serious situations that were going on there. One point of clarification, I think, uh, Senator Hammer was trying to make this clarification. In May, 50% of your turn back if you're not in compliance will be withheld in, in escrow until another 60 days and then we one more chance to get compliance and then it will be redistributed. will lose it. That's general finance street fund turn back in the state. OK, if you get it done in the 60 days, we'll just file the report in May and we'll be good, which is a great thing. We hope that's what happens to you and thank you all for coming today. OK. Down to review reports. Thank you, Mr. Chairman. I'm gonna review the reports on uh we start we have 16 reports, uh, that was deferred from the previous meeting, start on pages 1 through 5. We have Lone Oak County. The committee in the October meeting asked staff, they defer this report and asked staff to refer this, uh, the county clerk's finding that reads a review of payroll records in the county clerk's office for the period of January 1, 22 through July 22 of 23 reveal the following questionable payments totaling over $4200 involving three employees as follows. Vacation leave taking before Lee was earned comp time without taxes withheld. Overpayments due to hours work being reported to incorrect pay periods. Duplicate payments for inclement weather. Personally, without adequate sporting documentation for hours available and miscalculation of cop time. We recommend that the county consult with legal counsel regarding the legality and irreconcilable nature of the clerk's policy when compared to the county's policy. We did refer this on October 10th, we sent a letter to the Department of Labor and minimum wage and overtime. We checked with them on Monday. We have not, we have not received a response from them. We also checked with the county clerk. She has not been contacted by them, uh, just a reminder, staff follows up on all findings from the prior year. So, um, unless there's another directive staff recommends that we file this report. You heard that would need the most to file a report. You got a motion. OK, need a second. And all those favors say ah. OK. Continuing on pages 6 through 8. We have Cercy County for that was deferred from October 2022. We deferred this, uh, because we didn't have a response from the airport uh commission chairman, Mr. Joe Wilson. uh, Mr. Wilson was, uh, invited to this meeting. And um we have not heard from his staff recommends that we defer this, this report. OK, I need a motion to further report a motion to 22nd, all those papers say ah all those folks, OK. Continuing on page 8 under deferred reports, we have two, regional water districts that we deferred because we had a lack of of a proper responses in October. We have since received proper responses, staff recommends that we file both reports. We need a motion to file a report. Motion. All those favor say ah. OK. Continuing under deferred reports on page 10. We had the uh the town of Patmos. 23, 22, and 21. On the recorder treasure, have pre-numbered receipts were not issued for revenues in the general fund, fire department, and ARPA funds for 23, 22, and 21. And the part fund for 21. As required by code. This is a repeat finding from the prior year. Salary paid to officials. We reported on the internal and the IRS form 1099 instead of a W-2. This is a repeat finding as well, and we have recorded treasure, uh, Randy Peters here today. Mr. Peters. Could you come to the end of the table, please, sir? Uh, page, uh. 10. This place. Thank you, gentlemen for being here today. Could y'all Just give us an explanation of what is going on there. Uh, we Push your button, please. Uh, we did do some of the receipts, but we didn't do all of them. Uh, Mr. Petters, can you pull that a little closer to you, sir. We did do some of the receipts, but uh apparently we didn't do all of them. And on the uh The 1099 thing we had always uh used a 1099 instead of W2. Because we thought it was contract labor. Uh But we're, we're gonna start using W-2 on that one. Yes sir. Is there any questions here y'all? No question. Staff recommends we file a motion and a second. All in favor. It is filed. Thank you gentlemen. I appreciate you. Thank you. On pages 11 and 12. We have 10 private water and sewer reports that were deferred for lack of proper response from October. We have since received uh proper responses on all 10 staff recommends that we file. They most of, except the report and file. I got a motion and a second. All in favor. On page 12, we've got one report that's that was certified to the bond board and referred to the PA and the AG. Sharp County 2023. Under other issues. The county discovered and we verified that a county employee deposited 5 2,023 payroll checks totaling over $2600 in 23. And again in 24. The bank returned the duplicate deposited amounts to the county's bank account and the individual was terminated from employment on June 27, 2024. So, question here, what do we usually do in a situation like that right there when it deals with money that's going to folks and actually it's not being repaid in the right manner. I mean this was payroll checks. He took his payroll check mobile deposited in one year, kept it in mobile deposited again 6 months later was the issue here. Uh, they terminated him, the the bank gave the money back to the to the uh county, but since it's a county employee, we went ahead and certified it to the bond board so that he is no if he gets another employment with another government agency, he won't have, um, he won't be bonded. OK. Well, we just need to file this bond board will do their job and so will the prosecutor. Looks like the county got their money back. Neither a motion motion and a second, all those in favor, say ah. OK. Starting on page 13, we have 8 reports that we, we referred to the PA and the AG. starting with the city of West Memphis, 2023. On the mayor, the treasurer, and the finance director, the city discovered the following unauthorized transactions totaling over $5500 in physical year 24 and 23. On July 5th, 24, a city employee purchased 3 gift cards totaling $2000 after receiving a request from an email address that appeared to belong to the mayor. After discovering the email was fictitious, the employee notified, uh, reported the issue to the finance director. However, funds could not be recovered. On May 16th of 23, unauthorized withdrawal of over $3500 was made from the city's bank account. City personnel discovered the unauthorized withdrawal upon reconciliation of the affected bank account. However, since the withdrawal was approved previously through policy pay, the city was unable to recover the funds. OK. Let me ask you this, Joe. Has this been turned over to a prosecutor? Yes sir, and the AG OK, so we really just need to file this yes sir need a second 1st and 2nd. OK. Continuing on page 13 and 14 under referred to the prosecuting attorney and the AGs. We have, uh, Baxter County 2023. Under the county judge. County and circuit clerk. Review of two credit card payments revealed over $600 in credit card charges for meals that did not include itemized receipt or documented business purpose, in some cases completely undocumented. We referred this to the PA and the AGs. OK, so we just need to follow it, y'all. If there's no 2nd all those papers say uh. Continuing under referred to the PA and the AG on page 14. We have county um Carroll County 2023. Under the sheriff's office on September, I mean, uh, on December 14th, 23, former Carroll County Deputy Blake Ringerton was charged with forgery, theft of property, and tampering with public records. Prior to resigning from employment on October 8th of 22, Greenberg served as coordinator and and received unallowable compensation from the STEP grant. Staff recommends we file no questions. OK, motion 2nd, all those folks say. OK. Continuing with uh referred to the PA and AG on pages 15 and 16. We have independence County 2023. Under the county judge on May 1st, 2024, the county discovered a collection notice in the desk of a former employee. who resigned on March 11th of 24. The notice indicated a ballots owed on a credit card account established by the previous county judge who indicated the account was established using his personal credit. But with not, but with utilized primarily for county business. The previous county judge and the former employee have access to the credit to the card and allowed other officials to use it as well. Based on our review of credit card statements from November 10th, 22 to October 11th of 23. Provided by the previous county judge and current county officials, we determined the balance owed consists of the following. Almost $3800 of unpaid charges incurred prior to our review period. Almost $1400 in fees and interest charges incurred in 23. And $416 of purchases made in January of 23. Without supporting documentation, we were unable to determine the validity of the purchases made. Additionally, statements were not reconciled and balances were were not always paid in full each month, resulting in fees and interest noted. February of 23, the county paid a little over $1300 for charges made in 22. For which documentation was provided and the county employee reimbursed $5500 for personal charges made in 23. Statements received after these payments were not provided to the current or previous county judges. As of the report date, the $4,212 ballots remains unpaid. The recommendation of the county attorney and that the county was working to obtain additional documentation to substantiate the amounts owed. OK. So, Joe, they're going at this in the right direction, isn't that right? I've talked to the judge and yes, they're, they're doing their best to research these charges. And his concern if you read his response is that if they pay them without documentation, he's in trouble. If he doesn't pay them, he's in trouble. So they've got themselves in a bad situation, and what really bothers me about this. I know y'all too. I mean, really a, a county car or a city card is not meant to be used for anything except the the use of city of of property that obtained and so, uh, Joe, we did they turn over to a prosecuting attorney, OK. All those in favors, I mean, need a motion. You need a second. I say, OK. Continuing on page 16 and 17 under um reports refer to the prosecutor and the AG. We've got Jefferson County, um. Judge, uh, County Judge Gerald Robinson was invited today, but he had a, he called with a uh prior conflict, and he requested that we defer this to the May meeting. Need a motion to to defer this to the May meeting. We got a motion and a second. All those players. OK On page 18 and 19 under continuing under prosecuting attorney and referred to the AG. We have the city of Gordon. under the mayor, recorder treasurer, and marshal. The city marshal and elected official was paid workers' compensation benefits on a uh and a full salary simultaneously resulted in salary overpayments of almost 5. $54,000. And non-compliance with code. These overpayments occurred from December of 20 through August of 21 in January of 22 through March of 22 and in June of 22. Additionally, under the uh same officials, the in December of 20, the city sold a police uh vehicle for $1000 according to the bill of sale that was signed by the marshal. These proceeds for the sale were not deposited in a city account. Also on page 19, uh, under the mayor and McCorter treasurer. City funds totaling almost $2300 were used for a catered holiday dinner for employees and guests. In apparent conflict with Article 12, Section 5 as interpreted by AG's opinion 91,410. OK, OK. Do you have a question? Finish this one OK. John, let me ask you this. Has this been turned over to the prosecutor, OK. Need to make a motion to file, Carolyn and a second, OK, all those papers say I alright, we've, we've had a request to go back to Jefferson County. There was a couple of comments we in our in our speed to get things moving we didn't see the hands, so. Senator Hammer. Well, would you like me to read the findings? Um, yes, please. Page 16. And 17. Mr. Jefferson County 2023 under the county judge. On February 10, 2021, the county paid over $305,000 for the installation of solar panels on 3 county buildings. As of the report date, the panel had not been installed in noncompliance with Article 12, Section 5. The county sold a truck in 2023 in noncompliance with code. Competitive bids were not solicited, properly waived or approved by the court for the following items in noncompliance with code. Two consecutive invoices issued in 23 dated one month apart for trimming limbs at $22,000 each. 3 consecutive invoices issued in 24 and dated the same day. For tree and stump remover removal for almost $23,000 each. The following equipment items, all of which were financed with a local bank. $645,000 for a caterpillar Road reclaimer, $320,000 for two John Deere tractors, 201,000 for 4 GMC trucks, 155,000 for 23 international water truck. 86,000 and 50,000 for 223 GMC trucks respectively, $83,000 for a Volvo asphalt roller, 75,000 for Kubota uh track loader, $74,000 for a bulldozer and $54,000 for a dump truck. The county added 34 new lines to the road department phone bill in 2023 and paid over $19,000 for services from September of 23 through October 24. The new lines could not be traced to numbers and servers or equipment being used. Got a question for you, Mr. Archer. Of all of these different expenditures was this included in the budget. For the previous year for the year of actually spending money. There was not a finding for over budget in this year, in the 23 year. Not, not, there wasn't a finding for such so if that was a county judge or if that was even a mayor, technically, if they had that in their funds under a certain code, would that not be lawful? Well, we're not questioning the type expenditures we're questioning the the bid compliance on the on the big one with all those I listed, they had, they didn't bid it, so they all because. The law requires like let's just take the first one there, the two consecutive invoices. The laws uh. Specifies that you can't split bids to avoid split invoices to avoid bidding. Well, that looks a whole lot like the definition of splitting bids. You got two of them back to back on the same invoice numbers one apart and the two of them together, 22 each, they, 22 individually that don't have to be bid, but when they total 44,000, that exceeds the limit of 35,000. The same thing with the, the 3 invoices consecutive invoices together, which it appears to be one project, it's over the. $35,000. Senator Gilmore, you're recognized. Thank you, Mr. Chair and thank you for the latitude in going back to this, um, because I think it, it, it bears discussing members we've sat in here. Uh, month after month and her uh issues with Jefferson County and how things are being handled there, um, I know the, the county judge is not here so I have a question for staff, then I have a question to the chair. So, uh, staff, if you don't, if you don't mind, uh, Mr. Archer, um. We just, I know we voted to defer. Um, so what that means it won't be heard until May. I know that there's already other findings that are pending in front of a prosecutor and the attorney general's office. Um, do we have to hear from the county judge today, or can we take action to move forward? I mean to file the report to file the report, that's up to y'all. OK, uh, that's what I need to know. So, uh, Mr. Chair, I know we have folks, I think from Jefferson County here may not be the judge. Is it possible to hear from the folks, uh, from Jefferson County. I know if they're willing to speak, I don't know that they are if, if they are, would they? I know this man has been waiting to speak. OK, if, if we can, if we can hear from him and and see what he has to say, that'd be helpful. Senator Hammer. I'd like to make a motion to rescind. Our motion to defer this. So that we can bring it back up for discussion now need a motion to rescind the vote I want to make the motion to rescind the vote to, to uh defer this report to me sorry. No, to expunge vote, sorry. Make a motion to expunge the vote by which we uh deferred this report to me, OK, OK, I'll. OK. All right, and then I got the appropriate time you get ahead of me, sir, one more time. We heard your name about a month or two ago, but can you identify yourself once again, uh, Lloyd, Lloyd Franklin the second, uh, justice of the Peace, District 5, Jefferson County. Uh, first, I, I would like to clarify there was a question of whether or not um I guess with the invoices that were stated whether or not the judge exceeded his appropriation. Um, if you look back in the page, I think there was a finding in there 2003-1. The county judge actually won a million dollars over budget in 2023. Uh, what he is doing to exceed his appropriation is he will create invoices and bills with vendors and then what happens is he utilizes the money that's appropriate to spend on whatever he wants that he shouldn't be spending it on and then he creates uh in 2023, a million dollars worth of invoices which he brought over to 2024 and in the quorum court meeting basically told the quote unquote, if you don't appropriate a million dollars to pay these invoices, the vendors are gonna sue, which in turn forced the court to appropriate a million dollars out of our reserve account to the road department to cover these illegal transactions that he transpired with. Now, as far as the equipment and things that you notice there, it's almost about $2 million worth of equipment that he purchased in 2023. I believe that the law on the book says that you can't spend any money that has not been appropriated. So what he did was he contracted the county into a finance agreement with a local bank with uh an appropriation in place. So what he is uh uh in basically done is he's obligated the county, uh, which is in 2024 to around $1.2 million worth of lease payments to particular banks that he didn't have an appropriation for. And he's also tied the county into uh lease payments for about 1.1 going into 2025. Now he didn't have an appropriation for any of these contracts, uh, for finance that he entered into in 2023 and so he's spending money that he doesn't have, but he's also obligated to county to these payments and forcing the quorum Court to make good on payments that he's obligated to county to. Now that also goes back to a particular instance that we reported to legislative audit. On another incident where we built 3 buildings and we have a mortgage note of about $660,000 payable to Simmons Bank. Well, we appropriated this money in the county judge's budget, and he said his budget for 2023. Well, the money that was obligated for the mortgage, he spent it on something else. So when it was time to actually pay the initial note, he wouldn't explain to the court where the money went that was obligated for the note, so in turn to pay the note he. took it upon himself to do a court order and authorized the county treasury to allow a bank to draft our bank note to make a payment on a loan that the county had. Now, This money wasn't appropriated. It didn't go through the county clerk's office. It didn't go through the county judge's office for approval. It didn't go through the treasurer's office. Now, this is just a court order that he did from his office, his desk to the treasure, and allowed somebody, a vendor to draw 665 some odd dollars off of a county money market account, and this was submitted to legislative audit now. He's not a circuit judge. I don't know how these court orders work or where he would have the authority to supersede the quorum court. To spend money that hasn't been appropriated, so. Can, can I hold you up just for a minute? Go for it just for a minute, sir. We're gonna let you come back here because this is pretty important what's going on. Technically within a county, there's a 10% holdback each year for the budget, ain't that right? That's right. OK, now the, the funding that you're speaking of is this exciting that money that actually was in the original form presented to the corn court in either November or December of the previous year. You restate the question for me. You know, each budget what you do for the county like you do one in November, December, like now for next year and you withhold 10%. OK, if money is spent the next year, is that exceeding the amount of money that was appropriated by the court at the finance committee and the full form uh concord. His budget was around somewhere between 4 and 5 million, but he created an excess of a million dollars in bills in 2023. And he brought the invoices over to 2024 and demanded payment for bills that he created in 2023 and 2024. I just Yeah. I, I heard that. OK. OK, hold on just a second sir. I, I was just gonna let you know I have a motion at the proper time, but I think you might have another question. Do we have anybody else that has questions? Yes sir, and we've heard a lot about this one already. You've helped us before. Well, we appreciate it. We're gonna recognize Senator Hammer Senator, go right ahead and fellows, let's, let's go ahead and try to tie this together, OK? I, I just want a little bit of information. Were you there? How long you've been on the board or how long you've been on court? Uh, this is my 2nd year on the court, but prior to I've been on the court for 6 years prior to this term. OK, we can just enlighten me about the $22,000. If I'm reading this right, it's 22,000 to cut down a tree. Is that right? Yes sir. Um That's a lot of money for a tree. We, we don't have a clue what tree it is. Uh, there are several invoices there that, you know, a problem we've built and been dealing with for years is the bidding process, cutting bids as you see duplicate bids, we don't know where the work took place, what was done. There's nothing to identify the work that's being done. I mean, it's just kind of what we've been dealing with in Jefferson County. I mean, even to the point where there's been repeated findings for illegal sales of uh county equipment where he's not. Following the process when he's selling equipment. I, I filed a lawsuit pro se, but you know, there's only so much that we can do. I'm actually under litigation with the defamation lawsuit with the county judge right now for even reporting to you guys the violations that we found for investigation. OK, I tell you, let me, let me get one other question where I put it. Let's get it on the ground then. Uh, the other question was, were you there during the time of the contract for the installation of the solar solar panels. No, sir, that was uh prior to me and. February of 2021, but I was the one that uh discovered it and brought it up for conversation. We're going into 2025, so I guess we're basically 4 years later, we have not seen nor located any solar panels in Jefferson County to be installed on buildings, and that money was paid for with state money and federal COVID funds. OK, I'm gonna, I'm gonna hold there because you got a motion coming. Thank you and we, we do, but can I ask you one more question on those solar panels. If they didn't spend the money on that, what, what did they do with the money? Well, the money was actually spent for solar panels, uh, and it was a cooperation between two different accounts. It was uh county money that was involved and I'm sure it was involved in some state money and there was also federal COVID money that was uh paid also into the invoice that went to the 3P group for the solar panels, and they were supposed to be installed on 3 different buildings, but 3 going on almost in 2 months, 4. years later, we've yet to see any solar panels to be installed on those buildings. OK, sir, uh, Representative Lane Jean. Thank you, Mr. Chairman, um. Um It's been a while since I've read this. Did, did y'all have a budget in 2023 or y'all working off a prior year budget. We had a budget in 2023, but there has been some years y'all have not had much, is that right? If they had a budget, they may have a working budget maybe for 30 days starting off the year until they complete the finalized budget, but I haven't seen a time in Jefferson County where they went past 30 to 60 days into the beginning of the year without finalizing the budget for the continuing year and generally that's if, if it's kind of tight. and they do a 30 day budget. I believe that's kind of allowable just to get the year started off while they uh go ahead and complete and fine tune everything if they're looking for like um maybe the last settlement from the state to come in. OK, so 2023 did have a budget. We had a budget in 2023, as a matter of fact, the county just set his own budget for 2023. So he had carte blanche to say that whatever he would wanted it that was prior to me coming onto the court in January 1st 2020. Thank you. OK. Joe, would you like to give us a recap of where we are as far as the auditing process Oh, OK, Senator When was the judge notified of this meeting? How long ago? Uh, we, we actually as to to make good on a promise that I made to y'all in October meeting. We had exit conference. I think it was 2 weeks ago. It hadn't been long Senator. It was, it was the, I'll tell you what it was, it was the 19th of November 18th, 19th of November, 18th of November. And when were you notified he couldn't be here, uh, that day, same day, he said he told the supervisor at the exit conference that he had a conflict on that day because he asked, would he be invited back and the meeting was set and he said, I can't be there that day. I've got a conflict. All right, thank you. Senator Gilmore, thank you. And before I get to my motion, uh, just back to Mr. Archer, um, he's failed to appear before this committee previously several times missed the September meeting and showed up at the October meeting. That's right. OK, so, um, with that, I, I, I wanna make a motion because as I understand this gets referred to the prosecutor and the attorney general's office, um, and, uh, once it's filed, it'll actually go to the Attorney General's office once it's filed, and I know they're looking at other things that have been referred there from this committee as. well. So with that, I want to make a motion to file. That's my motion. OK, Senator Gilmore's motion. I have a second Second, all those papers say ah right. Thank you, sir, again, thank you. Yes sir. Continuing under reports uh that will be referred to the prosecuting attorney in the AG on page 21. We have Lafayette County, 23 and 22. Honor the sheriff, the county's county's personnel policy states overtime sh should be worked in emergencies or when the public health, welfare, or safety of the general community is in danger. From January 1 of 23 through March 16th to 24, the administrative assistant of the sheriff's office received over $9200 in overtime pay. The amount included over $2200 for working holidays such as Thanksgiving, Christmas, Christmas Eve and New Year's Day. We identified at least one holiday of which the administrative assistant claimed to have worked 8 hours but did not resulting in $167 overpayment. It should be noted that the administrative assistant approved her own time sheet using the county's the sheriff's signature stamp. Furthermore, we were unable to determine if the overtime hours met the criteria outlined in the County policy. OK. Joe, what, what is taking place on this with our, on our end. Uh, we have turned it over to the prosecuting attorney and the AG's office, and they're looking into it. Need a motion to file all those papers say. OK Moving on to uh reports with repeat findings. We have 9, such reports starting on page 22. With the town of Banks. Uh, we quarter treasury Levi was invited, um, she has, she called with family medical issues, uh, could not be here today. Staff recommends that we defer that report. OK. I need a motion to to did you say defer defer. I need a second, Carol. Carol, all those papers I continue on page 22, uh, more repeat findings. We have the city of DeWitt, 2023 under the clerk treasure. Fixed asset records were established but did not include additions, deletions, control totals, and amounts as required by code. It's report, this finding has been repeated in the prior two reports. One district court clerk, the county, the ballots remaining in the bank account of over $11,000 was not identified with receipts issued or cases not yet adjudicated and payments made on all unpaid individual time accounts as required by code. This is also a repeat finding. I believe we have uh clerk treasure. Melanie Adams and District court clerk. Caitlin Hargrove and district Judge Park Eldridge here today. We want to welcome y'all today. Welcome. Could you identify yourselves we've heard it, but let's hear it one more time. Melanie Adams, city clerk for Dewitt and I'm James Black Mayor. Thank y'all for being here, sir. I apologize. Yeah, could you explain a little bit about what's happening and what we're doing to kind of get the corrections because I talked to you a little bit before the meeting. I could tell that y'all are serious about getting this freight. Uh, yes, sir. Yes, Mr. Chairman. Um, Uh, I was appointed, um, city clerk in October 22, um, miss my predecessor had passed and I was not trained properly and, um, She didn't train me on all the duties that I, that she had. to do and um so as being appointed city clerk, I had a very huge and overwhelming job. duty. I, I had an overload and I hired um a deputy city clerk, and um some of the duties were neglected and I have a new deputy city clerk and we are in the process of uh correcting all the neglected duties. Yes ma'am. And then um I have um for the, for the fixed assets I have, uh, reached out to an elected official, and she has helped me, um, put a spreadsheet uh Excel spreadsheet and I'm in the process of putting our fixed assets in the computer for to correct that issue and then on the bank, uh, reconciliations the second finding I have um contacted CSA software Solutions, and they're going to come to Dwit and give us in-house training on bank reconciliations. OK. OK, ma'am, thank you. So are they on the right track with what's going on? Yes sir, it sounds like it is the Is the court clerk here? OK, I will address our issues or you want to do it now? Well, that's that's up to the committee. see if there's any more questions for these two individuals. Yes, sir. Any questions on these folks and we have one more person that would like to speak. Come right on up, sir. Uh. Thank you. Yes, sir, for the record, I myself I'm Judge Park, the older district judge for uh for the DeWitt department of the South Arkansas County District Court. Today I have with me my district court clerk, Caitlin Hargrove, um, our finding was we for once we had too much money, so our problem is we have an identified funds. What is happening, Chairman, is it's a receding issue that we've discovered with our receding agent for our fines from our court is done through our DeWitt police department. So what's happening is sometimes when Receipt funds in, say, for example, I pay a fine for you. I come into the police department and they were, they, what they do is they issue the receipt in my name and instead of your name and your name is the one where the fine is and that's where the funds need to be applied. So the steps has been taken by the clerk to correct this problem is they were not doing duplicate receipts. So what would happen is you would come in, pay your fine, you would get a computer-generrated receipt and that receipt would go out the door with you. So therefore what we're doing is asking them to basically give you a receipt then hold a receipt back so it can be turned into the clerk. The city pays over our funds once a week, so we get a mass check and it's hard for us to identify things when we don't have a receipt to go back to. So that's how it cause he's unidentified funds. We've had a few issues with credit cards, uh, when they're paid online, when, when you pay a fine online, a a email is generated to the clerk's office. Sometimes maybe that gets lost or whatever in the email process. So what's happening now is we've requested a monthly report from the credit card company so we can reconcile with that instead of relying upon a receipt per individual who's paying those fines, um, the only issue that that I I would ask the committee some leeway is they keep telling me as the judge, the way I can solve this problem is issue an order and disperse these funds, but the problem is this is not a static number. numbers going up and down. So if I give an order dispersing these funds, I'm gonna be above or below where I need to be. We're still working on and we're finding things that we constantly go along. The finding shows that our balance was $11,544. We've gotten it down to $5,605 and they strip it from just having people come to court and say, I paid my fine and were able to go back and find it and this will be an ongoing issue that we have and I'll be more than glad. I I like being on your end of the table instead of this end, so, um, I would, uh, but I cannot issue that order to correct this problem until I get that static number, and once that number's static, I'll be more than glad to disperse these funds and not come and, and not be bothered or be prepared for the committee again. Thank you, George. Yes, sir. Mr. Archer, is that the explanation we need? like they're working on it, and we recommend it to file the reports no more questions. OK, motion 20, question. Go ahead, Representative Carroll. Thank you, Mr. Chair. Judge, uh, we've heard this before. We understand exactly, um, we've had this come before this committee before, and we appreciate the fact that you're working diligently to bring it and we know that the AOC uh will work with you too, and it sounds like you've reached out to them, so we do appreciate that. uh, yes ma'am and thank you all. We have, and that's how we've been able to do some redundancies in place to try to correct this problem, but for the funds that are identified, we're working our way through them and hopefully we'll not be adding to this number anymore and it keep coming down and uh we're looking forward to getting this problem completely corrected. OK. OK. Most of May the 2nd to to file a report. All those say aye. George, thank you all for coming today. Yes, sir. Thank you for. I hope everyone has a good holiday. Thank you very much continuing on page 23 under reports with repeat findings of the city of Diaz under the 2023 under the mayor. General fun and street fund expenditures exceeded budgeted appropriations by $1,900,038,000 respectively in noncompliance with code. This is a repeat finding. I believe Mayor Perry Siegelfield today to answer questions. Parent Segal. That Steagall. I believe that's how you pronounce it. He's lawyer. Yes. Mayor, just have your seat there and identify yourself. I'm Perry Stigall, mayor of Dias Mayor, can you give us a kind of a recap of what is happening here. We, uh, when I first came into the office, uh, the court clerk or the dis the clerk treasurer took care of all the stuff and she resigned and I got a new one coming in and she and I both learned in the process of learning how to do the budget and I understand we can change it during the year. We have done it for this year and we are on. way to get it straightened out, so. Now give us, give us a lineup of what we're expecting and where we're at just need a motion to file it. that's it. OK, need a motion? OK, a second. All those in favor say aye. OK, thank you, sir. Yes sir. Continuing on page 9 under reports for the repeat findings. We have Em Springs 23 and 22 under the mayor, annual audit or agreed upon procedure report has not been completed or submitted to the audit for the sewer department for 19 to. 23 as required by code. Uh, the mayor, uh, had some health issues and couldn't be here today. However, going back to our first agenda item, they have supplied us with the engagement letter so they are actually in compliance with the law now as far as doing what they can, so staff recommends we go ahead and file this if there's no objection. Need a motion. Need a second. All those papers say. OK. Continue on page 23 under uh reports with repeat findings of the town of Haines, 23, um. Or under the mayor and recorder treasure. Although Schedule one of this report shows a balance of over $2100. It was brought to our attention that as of December 31st of 23, the gentleon owed significant amounts of balances owed to the street fund and to the IRS shown in note 4 of Schedule 3. When these outstanding amounts are considered, the general fund has a deficit fund balance of over $35,000. It's a repeat finding back from 2018. Um, if you look down to findings down part of this issue is they owe money to the street fund. They, um, are they the committee back in February approved alternative payment plan for them. They are in compliance with that. The mayor resigned after the exit conference and the quarter treasurer, Mr. McFadden, uh, called and said she didn't have proper transportation. But they're making payments on this for their approved payment plan. So if there's no objection, staff recommends that we file this one if there's no questions. OK, they're repaying this fund. What Joe, 10% a year, they're paying $100 a month based on their approved payment plan by this committee. OK. OK. Lanny, uh, Representative Lanny, you have a question? Uh, yes, Chairman Johnny. Uh Under under the code 27-70-207, aren't they supposed to have a direct deposit account. Uh, it's been direct deposit, I believe since about 2010 or 2011, I think is when they, the state allowed them to routing numbers to to uh separate account numbers to deposit those direct deposits. OK, all right. All right, well, that seems to be one of the problems is that you get new people in, they don't know to separate the money out and that was the purpose of that legislation was where it go direct into that street pond to avoid that problem. It seemed to be their problem right here. Thank you, Mr. Chair. I appreciate it. You know, Representative Blanding, that's, that's a very big thing that you just mentioned there. You, you changed folks and a lot of times they don't know what's going on as far as law. Yes, sir. Thank you, sir. So we need to follow this one it's the will of the committee, yes, OK, all those folks say ah, OK. Continuing under reports with repeat findings on page 23 of the town of Jacksonport. Uh, recorder treasurer Deanna Dotson was uh was asked to be here today and she had to work today and she called and asked to this be deferred. OK. Now, now, would you explain this one to us, Mr. Archer, is this basically dealing with with road money. No, this is Jackson City. Jacksonport, they just don't, they haven't reconciled their bank accounts or had someone other than the preparer approve it. OK. OK. So everything as far as we can see is OK, other than they're not in compliance with 1459108 which while we were bringing them down today, but she had to work but Normally we would defer these until she can get here, but it's the will of the committee. We can either defer it or we can file it. We got a motion to defer and a second, OK, mostly the fur and second, all those papers say I, OK. Continuing on page 25 for reports with a repeat findings. We have Phillips County 2023 under the county judge. The following issues were noted with finance purchase agreements, lack of proper Record keeping resulted in numerous duplicate payments, expenditures for finance purchases will not uh classified as principal and interest and payments were not always made in a timely manner, resulting in late charges. This is a repeat finding from the previous report, and I believe we have County Judge Clark Hall here today to answer questions. Oh boy. Judge Clark. Explain the situation, sir. Good morning ladies and gentlemen. I have with me a uh one of my attorneys on record. Does she need to be introduced? Yes, sir. Could you give us your name, ma'am? Yes, Chairman. My name is Brittany Webb with McDaniel Wolf. Thank you. Thank you for being here. Thank you, sir. The issue pertaining to Your question. Was that the Lack of oversight that has been aggressed. Most of it is created by the by the uh newly elected county clerk and the newly elected treasurer that we have in our county. 2023 was mainly a learning curve for them. They finally got it kind of straightened out towards the end of the year, uh. We were getting uh invoices that were sent to the county clerk county judge's office that was approved. But do the funds were available and it's illegal, uh, uh, dead owed by the county. It was sent, signed, sent down the uh The The issue became that the, the time for him to signing checks and getting a, a, a delayed bill when we looked at the computer that did the computer did not show that the bill had been paid. So we would reissue a warrant to get the bill paid and then we found out that Checks have been sent to them, so it's it's been a, a learning curve for our elected officials. But it has been corrected. They're doing a lot, they're a lot more uh uh in control of their of how they handle the uh billing system, the payment systems. Judge Clark, basically this, this kind of probably was a in the male situation that Quite possibly you had 2 payments made in 1 month for actually one that was old, I guess, sir, absolutely, but I will, I will remind this body, if I may, uh, to get the letter from Hell, Arkansas to Marville, Arkansas and in 20 miles away, takes 4 days. So, you know, it could be, there could be a a whole lot of days missing between. They got a bet check and we find out about it. It it's uh the mailing system in uh in that area is not. Um, not as, uh, uh, on top of their game as they should be, I say this, uh, George, the mail has been given a big problem, hasn't it? It has on my part. Yes, it has. What matters, Mr. Archer? We're good with following if it's the will of the committee. There's no Do we, do we want to file this one? If we do, someone needs to make a motion. Motion by Senator Hammer. 2nd, OK, all those papers say ah Clark, thank you for being here. Thank y'all, and I would like to take a personal privilege if I may Mr. Chairman. I want to apologize this committee for the last time I was here. Mainly because I was not prepared for the answers y'all were asking. And I do apologize. So because of that, I got a little. Cay for a better term. So I want to apologize to this committee that on my behalf. I know better and my wife has reminded me the day before I got here. Judge Clark, you've been in these seats before. You know what it's like, don't you? Thank you, sir, for being here, ma'am. Thank you for being here. Continuing on page 30, 26 under reports with repeat findings. Uh, we've got Prairie County, uh, the county judge, county circuit clerk, and the treasurer were all invited. County judge has major health issues. The court clerk is in court today and the treasurer has resigned. Staff recommends that we defer this, this report a motion to defer the Representative Carolyn, uh, second by Representative Langian. All those in favor say uh. Continuing on page 27, we have 8 private reports without responses, Staff recommends that we defer all 8 of these. who made that motion? OK. I mean, most need a second, OK, all those papers out. Uh, we're on pages 28 to 39. We have 45 reports with findings and good responses, uh, you'll take a minute to look through those and if you don't have any questions, staff recommends that we file. Native motion I. Second, all those papers say ah. Ah. On pages 40 to 44, we have 84 reports without findings, Staff recommends that we follow. Representative Lanny, would you make that motion to file it all those, uh, in favor of um say yeah. That's it. That's it. Next meeting will be. The next meeting will be May 8th. And thank y'all so very much and I hope you have a great, great Christmas. Thank y'all for coming, all of us. The little glimpse of. No.