Audit flags Pulaski County’s $5,000 to theater as violation

The Arkansas Legislative Audit released its annual audit report on the Pulaski County government Wednesday, with findings showing noncompliance with state financial laws by elected county officials.

According to the audit, Pulaski County Judge Barry Hyde approved a $5,000 payment to the Argenta Community Theater without a proper contract. That payment violated the Arkansas Constitution’s Article 12, which states that no county, city or town shall appropriate money to any corporation, association, institution or individual.

The audit also states that the county received 32 tickets to a show at the theater, a full page ad in the program, recognition before the show and refreshments.

A copy of the check obtained through the county treasurer shows a $5,000 check was made out to the theater on July 17, 2015.

County officials said the money went toward the theater’s ACTing Up Summer Program to pay for scholarships for underprivileged children in the county. The theater then mislabeled the invoice sent to the county as a “sponsorship,” for which the theater would have proffered the 32 tickets, full page ad and other perks in return, the officials said.

Comptroller Mike Hutchens said that while officials provided evidence of this error to auditors, it was not reflected in the final audit report.

“We didn’t get any concert tickets, we didn’t go to any plays, we didn’t do anything like that,” Hutchens said.

In a response to the findings submitted to the Division of Legislative Audit and obtained under the Freedom of Information Act, Hyde wrote that “Pulaski County will ensure a Contract for Services is in place for future programs. However, we disagree with the second part of the findings. The monies were appropriated by the Quorum Court into a budget. Therefore, we are not in violation” of state law.

Hyde did not return phone calls seeking comment Wednesday.

The Division of Legislative Audit referred its findings to county prosecutor Larry Jegley. When contacted Wednesday afternoon, Jegley said he had not decided how his office would act on the findings.

The county’s audit also singled out two instances of purported theft or fraud by

county employees, both of which were previously reported by the Arkansas Democrat-Gazette.

Sgt. Kelvin Hendrix, a 25-year veteran of the Pulaski County sheriff’s office, was arrested in April last year on a mail fraud charge after being accused of purchasing dozens of firearms with taxpayer dollars between 2009 and 2016.

U.S. Attorney Chris Thyer said in April that Hendrix took funds allocated to the sheriff’s office for the purchase of employee uniforms, and used those funds to buy firearms from Cruse Uniforms and Equipment with the aid of a uniform company employee.

Hendrix has not yet faced trial.

And 17-year employee Wanda Wyatt was arrested in June last year on a fraud charge after being accused of taking nearly $250,000 since 2008 through the county’s vehicle insurance program. She is undergoing a mental evaluation and has not yet faced trial, according to records.