Helena's books still sloppy, audit finds

Working on it, leaders tell legislators

Friday, May 9, 2014

City officials in Helena-West Helena have continued to make thousands of dollars in improper payments to or at the order of elected officials and did not require documentation for more than $400,000 in checks, according to a Legislative Audit Division report released Thursday.

The Legislative Joint Auditing Committee's panel on counties and municipalities heard dozens of reports Thursday including findings that a former chief of the Glencoe Volunteer Fire Department spent more than $20,000 in department funds on guns and other purchases for personal use.

The committee spent the most time Thursday trying to wade through the continued problems with financial practices in Helena-West Helena. The city has received unfavorable audits almost every year in the past decade, with findings ranging from $3,600 to $54,000 in improperly spent and tracked expenditures.

"Sen. [Eddie] Cheatham and I have been on this audit committee since 2009. ... These reports and these findings have been coming through for years," said Rep. Mary Lou Slinkard, R-Gravette.

The audit Thursday, focusing largely on 2012 but including some 2013 expenses, showed the city paid $2,023 for unapproved expenses ranging from $487 in Rotary Club dues for Mayor Arnell Willis to paying for a routine eye exam for another employee.

The audit also found $14,728 had been paid to various hotels, businesses and individuals without receipts or adequate documentation. Three alderman were separately overpaid by $3,600, $1,800 and $1,800 and the payroll preparer was overpaid by $1,400. To date, none of the overpayments or improper payments had been returned, the audit said.

Among other findings:• The city failed to seek competitive bids for almost $78,000 in purchases although a city ordinance requires bids for purchases of more than $7,500.

• Invoices were not authorized by the proper management before being paid.

• Supporting documents such as receipts were not available for 14 disbursements worth more than $407,000.

• $985 in district-court funds were reported stolen from the court officer's desk.

• The Police Department did not keep proper records of tickets, receipts or voided citations.

Willis, Police Chief Uless Wallace and Treasurer Patrick Roberson were at the meeting to answer questions. Both Roberson and Willis said they were in their first terms and were learning about accepted practices.

Panel Chairman Rep. Prissy Hickerson, R-Texarkana, pointed out that Willis is a former state representative and has experience as an elected official. Rep. Andy Mayberry, R-Hensley, asked Wallace if he had run other police departments, and pointed out there was at least one negative audit for the department where he previously worked.

Willis said he has stopped all payments for things like flowers and has talked to the city clerk about not paying any expenses or invoices until all documentation is presented and filed. But he said Thursday that he still doesn't believe he should have to pay for Rotary dues.

"When I first came into office in January 2011, having never been a member of the Rotary ... I was invited to the Rotary Club, and I didn't know I was going to have to pay dues," he said. "Monday morning, I'll pay that, so that's a nonissue. ... It's just a misunderstanding."

The Police Department also stopped taking fines as of Jan. 1, 2013, instead transferring the duty to the district court.

Prosecuting Attorney Fletcher Long said the audit report was referred to his office but he is waiting for a report from the mayor's office before deciding what to do next.

"I wrote a letter to the mayor according to the statute, and I asked the mayor to look into all of it including the matters in his own office. And after he's concluded his investigation, then I said that he should get back in touch with me," Long said. "The report I received did not have details of who spent what or how much was spent where. I would need those details."

An investigative report also released Thursday showed that the former chief of the Glencoe Volunteer Fire Department had used $20,739 in department funds for personal purchases including guns, ammunition, hunting supplies, music downloads, car parts and other items. Chief Gerald Holloway was fired in May 2013 after an investigation showed more than six years worth of unauthorized ATM withdrawals, purchases and online payments from the department bank account.

Audit investigators noted in their report that $12,878 more in purchases from Wal-Mart were unitemized and were questionable without being able to obtain receipts.

In Monroe County, an audit report found that Sheriff Gary Henard had purchased about 6,100 gallons of fuel for his personal vehicle using $19,917 of department money over the past seven years.

Henard appeared before the committee Thursday to explain that the small county agency does not have much of an equipment budget and he had obtained permission to use his personal car for agency use. He said there were no cars available in the department's motor pool, which was "in shambles," so he obtained permission from the county judge, a former sheriff, to use his car.

The county implemented a log policy on fuel use and mileage to address the situation, he said.

Metro on 05/09/2014