Sunday, September 13, 2026

Please select a breadcrumbs integration.

Disaster SNAP Fraud and Paying the Taxman Anyway

By Misty Ann
January 14, 2026 · 1:44 pm

DHS Audit findings

Little Rock — January 2026

Legislative auditors walked lawmakers through a series of uncomfortable findings at the Arkansas Department of Human Services this week, starting with disaster food assistance — and ending with the state paying sales tax to itself.

🌪️ Disaster SNAP Fraud

According to Legislative Audit, 13 DHS employees provided false or incomplete information to receive nearly $8,000 in Disaster SNAP benefits following the March 31, 2023 tornadoes in Pulaski County.

All 13 were fired.

  • 7 cases resulted in restitution orders totaling $4,165
  • $3,408 has been recovered so far
  • 4 cases remain pending with prosecutors
  • 2 cases were dismissed and sent back to DHS for administrative collection

🏥 A Medicaid Problem

Auditors also flagged a separate case involving one DHS employee who improperly collected about $5,800 in Medicaid benefits.

That employee was terminated.
The case has been referred to prosecutors and the Attorney General.
As of the audit, none of the money had been recovered.

💸 Then Came the Check

In July 2024, DHS issued a nearly $610,000 state warrant to the University of Arkansas at Little Rock.

Somewhere between the state and the bank:

  • The payee name was changed to a private business
  • The amount stayed the same

The Treasurer’s Office notified DHS on July 31.
Legislative Audit found out on August 21 — about 15 business days later.

The FBI was eventually notified.
The forgery claim was honored.
The money was returned to the state in November.

🚗 Paying Sales Tax… to Ourselves

Auditors also found DHS paid more than $17,000 in state sales tax on vehicle purchases that were supposed to be tax-exempt.

DHS said the tax was paid after being required at the point of sale and that the agency is now working with the Department of Finance and Administration to get the money back.

🔍 What’s Next

The committee deferred final action on the audit and asked DHS to return with proof that the fixes discussed during the hearing are now written into policy.

THE DAILY BRIEFING

What you need to know this morning

A concise local news roundup for the River Valley — about 15 minutes.
LATEST LOCAL NEWS
HAVE INFORMATION?

Submit a news tip

Send photos, video, documents or information to the River Valley Record.

Related Stories

March 5: Joint Budget Committee

March 5: Joint Budget Committee

Joint Budget Committee March 5, 2026 Representative Lane Jean We’re going to call Joint Budget together. Everybody get in their seats. All right, members, it’s our intent today to finish…
March 4: Joint Budget Committee

March 4: Joint Budget Committee

Arkansas Joint Budget Committee March 4, 2026 Senator Jonathan Dismang All right, members, grab your seats. Last chance. Grab your seats. With that, chair sees a quorum. We’re going to…
THE RIVER VALLEY RECORD
Independent local reporting for Russellville, Atkins, Dover, Hector, Pottsville, Dardanelle and the surrounding River Valley.
© 2026 River Valley Record. All rights reserved.