The results of a state audit reviewed by Arkansas lawmakers Friday revealed that a clerk at a public water authority in Columbia County was charged with a felony after more than $182,000 collected by the authority went unaccounted for during a nearly four-year period.
The Arkansas Legislative Audit found that the Dorcheat Public Water Authority only deposited roughly $1.33 million of the $1.51 million it received from 2019 to July 20, 2022, according to a report provided to lawmakers.
Monica Crumpler, who worked as a water clerk at the authority, was terminated in January and charged with felony theft of property over $25,000 in March. The charge is a Class B felony, punishable by a sentence of five to 20 years with the Arkansas Department of Corrections and a fine of up to $15,000.
Several internal control deficiencies contributed to the misappropriation of funds and the delay in uncovering the discrepancies, according to the report.
Auditors determined that the public water authority failed to comply with state law by not obtaining an annual financial audit or agreed-upon procedures and compilation reports for calendar years 2019, 2020 and 2021. The last audit of the authority was conducted by a certified public accounting firm for calendar year 2018.
Philip Story, president of the Dorcheat Water Board, provided lawmakers with a letter detailing changes the authority was enacting.
The Dorcheat Public Water Authority provides water service to roughly 750 customers in rural Columbia County, according to the report.
The Arkansas Legislative Joint Auditing Committee on Friday also reviewed a report on the state's tire recycling program.
In recent years, the state has struggled to support the program, which aims to recycle or put to beneficial use as many used tires as possible. While lawmakers standardized rim removal fees in 2017 intended to fund tire recycling, the Arkansas Legislative Council last year had to transfer $1 million to help pay remaining balances.
Proper disposal of tires is important for protecting public health and the environment. Unprocessed tires are slow to degrade. If left in landfills, they may fill with water, drawing mosquitoes and varmints.
As part of the review, state auditors issued findings for seven of the state's used-tire program districts. Arkansas is divided into 11 used-tire program districts, according to the Arkansas Department of Energy and Environment's website.
The Pulaski County Inter-District Used Tire Program entered into agreements with a vendor that appeared to conflict with a section of the Arkansas Constitution that bars political subdivisions from becoming a stockholder in any company, association or corporation; or obtaining or appropriating money for, or loan its credit to, any corporation, association, institution or individual, according to the report.
Auditors determined that items at the vendor's facilities were purchased with program funds and the vendor was allowed to process tires not collected through the program with program equipment, sell tire-derived aggregate and keep proceeds. The program also transferred 46 trailers to the vendor but is reimbursing the vendor for repair and maintenance, according to the report.
The Pulaski County Inter-District Used Tire Program also used waste-tire funds to pay $700 in charitable contributions to two nonprofits, which auditors found conflicted with the state Constitution.
The program also did not properly complete quarterly progress reports. State officials referred all three findings to the prosecuting attorney for the 6th Judicial District, according to documentation reviewed by lawmakers.
Auditors found that the White River Used Tire Program purchased a trailer from a board member for $3,000. The finding was referred to the prosecuting attorney for the 17th Judicial District, the report said.
A newly enacted state law allows the state Department of Finance and Administration to administratively close a business if the business does not provide officials with tire fees they have collected. The act also consolidates the number of tire program districts to four.
Rep. Grant Hodges (right), R-Rogers, reads his report as Rep. David Ray, R-Maumelle, listens during the Legislative Joint Auditing Committee meeting Friday at the Multi-Agency Complex near the state Capitol in Little Rock. (Arkansas Democrat-Gazette/Staci Vandagriff)