Jefferson County audit results released
A state audit of the government operations of Jefferson County turned up several findings, including the lack of competitive bidding for three new buildings, although officials defend how those projects were handled.
The state legislative audit looked at the county’s books and related operations through the end of 2021.
One finding in the audit report stated that competitive bids were not taken by the county when it came to three construction projects that included buildings for the County Corner, Veterans Affairs and the Health Department. The audit also says the contractor for those projects was not selected by the county.
Submitting a state Supreme Court case in support of their opinion, legal representatives of the county stated that they didn’t believe the case supported the legislative audit’s position.
In an email on Sept. 26, 2022, attorney Heartsill Ragon III stated that the Quality Fixture Case was decided in 1999, while the construction management statute was not adopted until 2005 and that the case does not address the statute in question. He also said the case did not support the legislative audit position and arguably served to support the county’s position.
According to the Clark Hill law firm, which has acted as special counsel to the county in the matter of the lease execution of the three buildings with the P3 Group, no facts have come to their attention to support the opinion but that they do have documents to support the legal matters dealing with the financial arrangement.
The P3 Group financed the construction of the buildings in what has been called a public-private partnership. The county is now buying the buildings over time from P3 through monthly payments.
Dee Brown, president and CEO of P3 Group, stated in an email that the Supreme Court opinion was reviewed by at least five lawyers and that the legislative audit has “clearly
misinterpreted this opinion.”
“The Supreme Court opinion clearly supports what we have opined all along, which is we believe that it would have been an easy matter for the General Assembly to state expressly and specifically, that this statute applies only to school districts,” Brown said. “Notwithstanding the longstanding attorney general opinion, the General Assembly has not amended the statute.”
Brown continued by saying the attorney general’s opinion was not law and there was no violation.
“Our position is identical to that of the Supreme Court in the opinion legislative audit cited,” Brown said. “We must rely on the plain language of the statute. …”
In another finding, in County Judge Gerald Robinson’s office, it was discovered that there were unauthorized cellphone charges totaling $19,306 during the period July 1, 2019, through Jan. 21, 2022. These charges were related to 25 non-county cellphone numbers that were added to the county’s account.
According to county officials, some of the unauthorized phones appeared to belong to family and acquaintances of the county judge’s chief of staff who resigned in January 2022. According to documents, County Judge Gerald Robinson notified the prosecuting attorney and the Arkansas State police of the matter.
“This was an internal find and the matter was handled as soon as it was discovered,” Robinson said. “This was taken care of way before the audit.”
Another finding related to the Covid Survivor Benefits Program, which used American Rescue Plan Act funding as authorized by the Coronavirus State and Local Fiscal Recovery Funds.
According to the audit report, the program included a $25,000 maximum benefit consisting of 25% of hospital expenses, funeral costs, lost wages and joint household expenses. The county paid $25,000 to one recipient without proper documentation of these expenses to satisfy the guidelines set by the county, according to the report.
In a response to the audit finding, Mullenix & Associates, which represented the county in the matter, the judge may at his discretion give the maximum benefit if there is no other financial support.
They also state that the list provided in the criteria formula was not intended to be all-inclusive and other debt may have been included.
“The U.S. Treasury’s Final Rule regarding the use of SLFRF funds made no changes to the Interim Final Rule’s enumerated eligible use for survivor’s benefits,” said Tucker Brackins of Mullenix & Associates. Brackins stated that the county established a set of criteria in determining survivor benefit awards and said the survivor in question satisfied the necessary criteria to be eligible to receive her benefits.
“She is a surviving family member of covid-19 victims. Her father was receiving $3,202 monthly or $38,424 annually in retirement income prior to his death,” Brackins said. “His funeral costs were $12,209.50 as evidenced by the invoice from Ralph Robinson & Son Funeral Directors.”
Brackins said those two items alone made her eligible for the full $25,000.
Other audit findings included the District Court Clerk’s office, where personnel discovered discrepancies concerning fees collected by a probation officer.
According to the report, the probation officer began collecting and receipting funds before his newly created position was formally approved by the Jefferson County Quorum Court.
The amounts charged for the probation and drug test fees were higher than the amounts authorized by the district judge and the funds collected were deposited in the probation officer’s personal bank account.
The report states that the probation officer indicated he was never told what to do with the funds he collected.
On Oct. 1, 2021, the probation officer reimbursed $4,300 to the district court and citizens who were overcharged were to be refunded.
According to county officials, some of the unauthorized phones appeared to belong to family and acquaintances of the county judge’s chief of staff who resigned in January 2022.