BENTONVILLE -- Prosecutors will not file criminal charges in connection with financial issues found in a legislative audit of Cave Springs.
Benton County Prosecutor Nathan Smith asked the Arkansas State Police in August to investigate any possible wrongdoing in connection with the audit. The State Police recently turned over its investigative file to Smith.
Smith said Friday the issues found in the audit concerned a need for legislative oversight, but the issues aren't appropriate for criminal charges.
Smith said he agreed with the State Police there was no intent by anyone to engage in criminal activity.
Cave Springs Mayor Travis Lee said he's glad for the findings and that the issue is now over.
The state Legislative Audit found Cave Springs failed to meet the requirements of state law in 22 instances from 2015 through 2016.
The city put $61,307 from its street fund into the general fund in 2016, which breaks the law, according to the report released in late July. The city did the same thing with $19,709 the previous year, according to the audit.
The audit also found a number of expenses paid without proper authorization by the City Council, although they were not cited as failures to meet legal requirements.
For example, the city's recorder treasurer was overpaid $14,509 in 2016, the report found. Another example stems from an April 12, 2016, city resolution authorizing buying a vehicle for $23,165. The vehicle ordered, however, was $33,655 after $10,155 in accessories were added to the $23,500 base purchase price. This resulted in "a disbursement in excess of appropriation totalling $10,490," according to the report.
Most of the instances cited in the audit as noncompliance with state law involve record-keeping provisions of those laws. For example, the city made electronic payments without using a method approved by the Legislative Joint Auditing Committee, according to the report.
The mayor hired lawyers without council approval, which is required, according to the audit.
Smith said the State Police found the issues in the audit concerned a lack of documentation and poor record keeping.
Cave Springs City Attorney Justin Eichmann told Smith the city is taking measures to correct findings in the audit, the prosecutor said.
According to Smith, Eichmann said the city hired its own auditor and has taken steps to seek reimbursement from employees who were mistakenly paid for sick time after their employment ended.
Cave Springs Alderman Larry Fletcher said he wasn't surprised at Smith's decision and he never believed there were any criminal violations involved in the situation.
Cave Springs Alderwoman Mary Ann Winters said Smith's decision didn't surprise her because she didn't expect them to find any criminal wrongdoing. "I hope it stays quiet and we stay getting down to business instead of dealing with he said, she said rumor stuff," Winters said.
Fletcher said they are making improvements in the city on a daily basis and continue to get the city's finances in order.
"We are excited about what the future hold for us," Fletcher said.
NW News on 12/16/2017