LITTLE ROCK, AR — December 5, 2024
The Arkansas Legislative Joint Auditing Committee on State Agencies revealed a mix of serious findings and moments of lighthearted humor, as legislators pushed for clarity on key issues.
The Department of Labor and Licensing presented findings related to travel reimbursements, delayed deposits, and meal expenses. Secretary Daryl Bassett and his team addressed the concerns, emphasizing steps taken to resolve the issues.
One point of contention involved inspectors claiming “vicinity miles” beyond the shortest city-to-city routes outlined in state guidelines. Bassett explained, “When you use Google Maps… DFA was actually looking at miles from one city limit to the next city limit. Well, that's not exactly what happens with my inspectors who are traveling to the various cities. They get to the city line, but then they often have to travel around in the city.”
Bassett argued the additional mileage was legitimate since inspectors were traveling between sites in the course of their duties. The department also resolved issues with meal reimbursements by implementing a required authorization form to prevent future oversights.
The Department of Human Services (DHS) faced scrutiny over missing or improperly tracked assets, unmonitored foster care trust funds, and handling of gift cards. The review revealed $33,000 in unaccounted equipment and gift card distributions.
Deputy Secretary Misty Eubanks acknowledged the findings. “We have so many stations throughout the state. This has been an ongoing cleanup process over the last, I would say, four or five years,” she said. Eubanks assured the committee that DHS had strengthened internal controls and conducted retraining.
At the Department of Parks, Heritage, and Tourism, the committee reviewed a theft totaling over $6,000 at the Mosaic Templars Cultural Center in Little Rock and an overpayment of nearly $500 in a sick leave payout.
Shea Lewis, Secretary of the Department, described updates to security systems and payment calculations. “Investigations are still ongoing… and we are working with the prosecuting attorney,” Lewis said.
The Arkansas Game and Fish Commission faced a phishing scam that diverted $420,000. Director Austin Booth explained the agency’s response. “We promptly implemented an entirely different procedure for changing bank account information,” Booth said.
In addition, the agency reported thefts of a laptop, a carport, and smaller items. Chair Robin Lundstrum asked, “How does anybody take an 18 x 21 carport?” Booth replied, “We have often wondered the same thing, ma’am.”
The committee also debated whether the phishing incident should even be classified as a finding. Representative Jeff Wardlaw argued, “It seems like reading this finding, everything was done right here. I mean, they had a theft, they reported it. So I guess I’m kind of dumbfounded as to why that’s a finding.”
Senator Jonathan Dismang agreed, noting that phishing schemes are increasingly common. “The world’s changed, right? So it’s a best practices issue as much as it is anything.” Legislators suggested that future reports differentiate between procedural findings and self-reported incidents of fraud.
The Attorney General’s Office reported a $2,400 overpayment to an employee due to an administrative error in career service calculations. Chief Fiscal Officer Sid Rosenbaum explained that the funds were being recovered and confirmed steps were taken to improve documentation.
In a heartfelt moment, Senator Lundstrum bid farewell to outgoing Arkansas Game and Fish Commission Director Austin Booth. “I want to wish you all the best,” she said, marking the end of his tenure.
