Shortage Update 2001 Through 2003

Shortage Update 2001 through 2003

ARKANSAS DIVISION OF LEGISLATIVE AUDIT MAY 12, 2005

Members of the Legislative Joint Auditing Committee:

We have conducted a review in order to update the Legislative Joint Auditing Committee on shortages that have been referred to local prosecuting attorneys by the LJAC. This special report covers shortages in excess of $2,500 that were forwarded to local prosecuting attorneys during the period January 1, 2001 through December 31, 2003. The methodology used in conducting this review was developed uniquely to address our stated objectives, and therefore, the review was more limited in scope than an audit performed in accordance with Government Auditing Standards issued by the Comptroller General of the United States.

The results of our review are contained in the attached report. We trust this report will assist you in your legislative decision making process.

DIVISION OF LEGISLATIVE AUDIT

Charles L. Robinson, CPA, CFE Legislative Auditor

February 11, 2005 PSSR04405

TABLE OF CONTENTS

Introduction / Objectives / Scope and Methodology...... 1 Background...... 1 Shortages Referred to Prosecuting Attorneys...... 1 Job Retention Rate for Individuals Identified as Having Responsibility in Shortages...... 4 Additional Information on Shortages from Prior Review ...... 6

Shortage Activity and Shortage Update by Judicial District:

1st Judicial District...... 9 2nd Judicial District ...... 12 3rd Judicial District ...... 14 4th Judicial District ...... 15 5th Judicial District ...... 16 6th Judicial District ...... 18 7th Judicial District ...... 23 8th North Judicial District...... 24 8th South Judicial District...... 25 9th East Judicial District ...... 28 9th West Judicial District ...... 29 10th Judicial District ...... 30 11th East Judicial District ...... 33 11th West Judicial District ...... 34 12th Judicial District ...... 35 13th Judicial District ...... 36 14th Judicial District ...... 37 15th Judicial District ...... 38 16th Judicial District ...... 39 17th Judicial District ...... 40 18th East Judicial District ...... 41 18th West Judicial District ...... 42 19th East Judicial District ...... 43 19th West Judicial District ...... 44 20th Judicial District ...... 45 21st Judicial District...... 47 22nd Judicial District ...... 48 23rd Judicial District ...... 49

Schedule 1 – Number of Circuit Judges Assigned to Each Judicial District...... 50 Schedule 2 – Update on Restitution Balances Outstanding from Prior Audit ...... 51

Note: A map illustrating the location of each judicial district is provided on page 2 of the report.

INTRODUCTION information related to each shortage in excess of $2,500 from representatives This report is being issued to inform the of each judicial district’s Prosecuting Legislative Joint Auditing Committee Attorney’s office and governmental (LJAC) on the procedures followed by entities in which the shortages occurred. the Division of Legislative Audit in We also obtained information relating to reporting shortages discovered during bond payments and restitution from the audits of governmental entities. This Arkansas Governmental Bonding Board report will also provide information and reviewed related Arkansas Code. related to shortages in excess of $2,500 referred by the LJAC to local BACKGROUND Prosecuting Attorneys for the time period January 1, 2001 through The Arkansas General Assembly has December 31, 2003. currently grouped Circuit Courts into twenty-eight (28) judicial districts. Judicial districts do not split counties but OBJECTIVES may encompass more than one (1)

county. Exhibit I on page 2 illustrates Our objectives in preparing this special the jurisdiction of each judicial district. report were as follows: Each judicial district elects one (1)

Prosecuting Attorney to four (4) year • Examine the number of cases terms to serve as the people’s attorney adjudicated, convictions, and in the enforcement of State criminal dismissals for shortages in excess laws. Highlights of the duties and of $2,500 referred by LJAC to local responsibilities of the Prosecuting Prosecuting Attorneys; Attorney are outlined in Exhibit II on page 2 of this report. A listing of the • Determine the prosecution rate, counties and the number of Circuit amount of recoveries, bond Judges in each judicial district is payments, and job retention rate provided in Schedule 1 on page 50. for individuals identified as having responsibility in shortages in SHORTAGES REFERRED TO excess of $2,500 referred to local Prosecuting Attorneys by LJAC by PROSECUTING ATTORNEYS judicial district and by governmental institution; and Arkansas Code Annotated § 10-4-111 states: • Update the status of pending shortage investigations and court If an audit report presented to the ordered restitution balances from Legislative Joint Auditing Committee our Special Report titled Judicial or the appropriate standing Districts – Shortage Updates subcommittee thereof reflects issued October 11, 2002. evidence of apparent unauthorized disbursements or unaccounted for funds or property by a public official SCOPE AND or employee [shortage], the METHODOLOGY Legislative Auditor shall forthwith report the transactions in writing to Our review was conducted for the time the prosecuting attorney for the period January 1, 2001 through county in which the public agency or December 31, 2003. We requested political subdivision is located…

1 Exhibit I

Arkansas Judicial Districts

Source: Administrative Office of the Courts

Exhibit II

Highlighted Duties and Responsibilities of Prosecuting Attorneys

• Give his opinion to any county or township office in his judicial district on matters of criminal law in which the state or county is concerned. A.C.A. § 16-21-102 • Commence and prosecute all criminal actions in which the state or any county in his district may be concerned. A.C.A. § 16-21-103 • Whenever he has information of the commission of any offense against the criminal and penal laws of this state or has reason to believe that any offense has been committed, summon all persons that he may think necessary to testify before the grand jury in relation to the offense. A.C.A. § 16-21-104 • Provide assistance to victims and witnesses of crimes. A.C.A. § 16-21-106 o Upon request, provide to a victim and immediate family members of all homicide victims: • Notice of critical events in the criminal justice process. • After a prosecution is commenced, information of: relevant criminal justice procedures, the crime with which the defendant has been charged, and the file number of the case. o Confer with the victim before amending or dismissing a charge or agreeing to a negotiated plea or pretrial diversion. o Notify the Post Prison Transfer Board at the time of commitment of the desire of the victim, or member of the victim’s family, to be notified of any future parole hearings. o Provide the following services to victims of crimes and witnesses of crimes and the family members of all homicide victims: Assist such persons in obtaining protection from harm arising out of their cooperation, applying for financial assistance, and applying for witness fees to which they are entitled; providing a secure waiting area during court proceedings; and interceding with such persons’ employers to minimize loss of pay resulting from court appearances. • Serve as the designated local unit of government for the express purpose of permit contracting with the Arkansas Department of Finance and Administration for the provision of legal services under part D of Title IV of the Social Security Act of 1935 in the collection and assessment of costs related to child support enforcement. A.C.A. § 16-21-108 • Collect fees in the prosecution of persons issuing bad checks. A.C.A. § 16-21-120

A.C.A. – Arkansas Code Annotated Listed in Code Order

2 Exhibit III

Examples of Shortages Referred to Prosecuting Attorneys

Unauthorized Disbursements Unaccounted for Funds

• Undocumented disbursements • Receipts over deposits • Personal disbursements • Revenue not receipted • Duplicate/altered invoices • Cash/checks deposited not receipted • Unauthorized salary disbursements • Destroyed receipts • Altered/forged checks • Improperly voided receipts • Accommodation purchases • Petty cash/change fund shortages • Employee/student loans • Bank transfers/withdrawals not receipted • Duplicate checks cashed • Theft of inventory • Conflict of interest disbursements • Unaccounted for fixed assets

Accordingly, LJAC forwards all audit LJAC to the Prosecuting Attorneys may reports with shortages to the relevant not necessitate an individual be Prosecuting Attorney as required. Ex- prosecuted. The Prosecuting Attorney, amples of unauthorized disbursements on a case-by-case basis, must examine and unaccounted for funds are provided the facts and circumstances of each in Exhibit III. shortage referral before a determination can be made of whether charges are Arkansas Code Annotated § 5-36-103 appropriate. states: “Theft of property is a Class B felony if the value of the property is two Exhibit IV on page 4 demonstrates the thousand five hundred dollars ($2,500) status of the ninety-four (94) shortages or more”. We examined all ninety-nine referred to the Prosecuting Attorneys (99) shortages in excess of $2,500 during calendar years 2001 through reported by the Division of Legislative 2003 and compares this information to Audit to LJAC during calendar years the status of shortages reported during 2001 through 2003: 26 in 2001, 44 in our special report for calendar years 2002, and 29 in 2003. These reviewed 1998 through 2000. The percentage of shortages totaled $5,337,514.70; an convictions obtained, including increase of 119% over the convictions obtained in federal court, $2,442,657.06 in shortages reported has increased from 43.2% for 1998 during calendar years 1998 through through 2000 to 53.1% for the current 2000. Of the ninety-nine (99) shortages audit period. Although formal charges examined, an individual responsible were not filed for thirty-six (36) of the could not be identified in five (5) cases. ninety-four (94), or 38.3% of the We contacted the Prosecuting Attorney shortages referred by LJAC in excess of of the respective judicial district in which $2,500 for calendar years 2001 through the remaining ninety-four (94) shortages 2003, this percentage is down from totaling $5,225,117.88 occurred to thirty-seven (37) of the eighty-one (81), determine the status of their review and or 45.7% of cases without formal investigation of the individuals identified charges being filed during 1998 through as having responsibility in the shortage. 2001. Four (4) of the cases we The Prosecuting Attorney has sole reviewed, or 4.3%, were still under discretion over whether cases are active investigation and the local pursued. Some shortages referred by Prosecuting Attorneys could not locate a

3 Exhibit IV

Prosecution Rate When an Individual is Identified As Having Responsibility in Shortages in Excess of $2,500 Calendar Years 1998 - 2000 compared to 2001 - 2003

1998 - 2000 2001 - 2003 1.2% 4.3% 6.2% 4.3% 3.7% 38.3% 45.7%

43.2% 53.1%

Formal Charges Not Filed (Indicated in red on pages 9 - 49) Conviction Obtained Investigation In Progress Prosecuting Attorney Could Not Locate the Related Case File Referred to Federal Prosecutors

related case file for an additional four totaled $5,225,117.88. Recoveries from (4), or 4.3% of the shortage cases we individuals responsible for the reviewed reviewed. Each shortage is detailed by shortages totaled $981,847.04 (18.8%) judicial district on pages 9 through 49 and recoveries from the Bond Board1 of this report. (For easy reference, each totaled $1,487,816.48 (28.5%), leaving judicial district is listed in the Table of losses not recovered of $2,755,454.36 Contents.) (52.7%). Of the losses not recovered, $997,435.46 represents unauthorized Entities affected by shortages can disbursements of grant funds in Chicot recover losses from the individual County (as detailed on page 30 of this responsible, the Arkansas report). Governmental Bonding Board (Bond Board), a third-party bonding company, JOB RETENTION RATE FOR or by resolving the issue through council or board action. Exhibit V on page 5 INDIVIDUALS IDENTIFIED AS illustrates the amount of restitution HAVING RESPONSIBILITY IN recovered from the shortages referred SHORTAGES for prosecution in which an individual was identified as having responsibility We examined the job retention rate for during calendar years 2001 through individuals identified as having 2003 and compares this to the responsibility in shortages in excess of restitution recovered during calendar years 1998 through 2000. 1 The Legislative Joint Auditing Committee sponsored the establishment of the Arkansas Fidelity Bond Trust Fund (Arkansas Code Annotated § 21-2-701 et seq.). The Bond Shortages included in this review for provides a self-insured fidelity bond covering all state, local, calendar years 2001 through 2003 and school employees in the current amount of $250,000 per occurrence, subject to a $1,000 deductible.

4 Exhibit V

Restitution Recovery Rate From Individuals Identified As Having Responsibility in Shortages in Excess of $2,500 Calendar Years 1998 - 2000 compared to 2001 - 2003

1998 - 2000 2001 - 2003

$779,603.45 $669,297.76 $2,755,454.36 $981,847.04 35.9% 30.8% 52.7% 18.8%

$1,487,816.48 28.5% $350,863.15 $373,139.88 16.1% 17.2%

Restitution Recovered Prior to Bond Payments Bond Payments Restitution Resolved through Council/Board Action Unrecovered Restitution

$2,500 referred by LJAC for Exhibit VI prosecution. We reviewed each of the governmental entities affected by a Position Retention Rate for shortage included in our review to Individuals Identified as Having determine the current employment Responsibility in Shortages status of the individuals involved. Calendar Years 2001 through 2003

Statewide, entities retained seven (7) of Elected the ninety-four (94), or 7.5%, of the Position Position Retained individuals identified as having NOT 3.2% responsibility in the shortage as Retained illustrated in Exhibit VI. Of these seven 92.5% Appointed Position (7) individuals, three (3) hold an elected Retained office and four (4) are employed in 4.3% appointed positions. Each individual’s employment retention is indicated in green by judicial district on pages 9 through 49 of this report. (For easy reference, each judicial district is listed Note: “Positions Retained” indicated in green on pages 9 - in the Table of Contents.) 49. For the seven (7) “Positions Retained”: one (1) has had formal charges filed and six (6) have not had formal charges filed.

ADDITIONAL INFORMATION totaling $347,626.50. During current ON SHORTAGES FROM fieldwork we noted additional payments and adjustments totaling $143,950.13, PRIOR REVIEW as detailed in Schedule 2 on page 51.

In our Special Report titled Judicial As of December 31, 2004, sixty-eight Districts – Shortage Updates issued (68) individuals have outstanding court- October 11, 2002, we examined eighty- ordered restitution balances totaling one (81) shortages reported for calendar $3,284,649.48 for shortages reported years 1998 through 2001 totaling during calendar years 1998 through $2,172,904.24. Three (3) shortages 2003. Although the Bond Board is the were still under active investigation initial recipient of any court-ordered when we issued our report. During restitution in cases where a bond current fieldwork, we determined formal payment has occurred, they have only charges were not filed for these three recovered $224,666.35, or 12.1% of the (3) cases. $1,860,956.36 of losses reimbursed to entities affected by shortages reported As noted in our original report, twenty- during calendar years 1998 through one (21) individuals had outstanding 2003. court-ordered restitution balances

Update on Shortages in Excess of $2,500 Filed by the Legislative Joint Auditing Committee (LJAC) by Judicial District during Calendar Years 2001 – 2003

First Judicial District

Cross, Lee, Monroe, Phillips, St. Francis, and Woodruff Counties

Judicial District Population: 102,075 5 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Note: After repeated requests, the Prosecuting Attorney for the First Judicial District did not provide information on the shortages referred to his office by LJAC.

Cross County

Cross County (Audit Period: 1/1/01-12/31/01):

2003 - $17,700.00 in receipts over deposits. Jay Hodge was identified as the individual responsible. Formal charges were not filed.

Lee County

Department of Correction – East Arkansas Regional Unit (Audit Period: 07/01/99-06/30/00):

2001 - $19,475.00 in receipts over deposits. Stuart Refer and Linda Andrews were identified as the individuals responsible. The Bond Board reimbursed losses totaling $18,475.00. Formal charges were not filed.

Monroe County

Brinkley Municipal Waterworks (Audit Period: 1/1/01-4/30/02):

2001 - $101,061.28 in unauthorized salary disbursements and unaccounted for revenue. Phyllis Andrews pled guilty to felony theft of property charges on August 6, 2003. Andrews was sentenced to fifteen (15) years incarceration with ten (10) years suspended and ordered to pay restitution in the amount of $48,321.88. The Bond Board reimbursed losses totaling $75,061.28 and the City recovered an additional $25,000.00 bond payment from CNA Surety. No restitution payments have been received.

2001 - $4,906.59 in personal disbursements. William McCoy was identified as the individual responsible. The Brinkley Water and Sewer Commission approved disbursements totaling $3,804.63. McCoy signed a promissory note to pay restitution totaling $1,101.96. Total restitution has been received. Formal charges were not filed.

1st Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Monroe County (continued)

Brinkley School District (Audit Period: 7/1/99-6/30/00):

2001 - $9,362.66 in personal disbursements. Joe Williams, Dick Young, and Steve Thomas were identified as the individuals responsible. Formal charges were not filed.

Department of Finance and Administration – Revenue Division – Office of Financial and Management Services – Cashiers Section (Audit Period: 7/1/00-6/30/01):

2002 - $8,699.00 in receipts over deposits. Karen Churchwell was identified as the individual responsible. Total restitution has been received. Formal charges were not filed.

Monroe County (Audit Period: 1/1/02-12/31/02):

2003 - $10,109.98 in receipts over deposits. Sharon Caldwell pled guilty to theft of property charges on August 10, 2004. Caldwell was sentenced to five (5) years probation and ordered to pay restitution in the amount of $10,609.98. The Bond Board reimbursed losses totaling $9,109.98. No restitution payments have been received.

Phillips County

City of Madison (Audit Period: 1/1/01-12/31/01):

2003 - $2,585.00 in receipts over deposits. Various individuals were implicated in amounts less than $2,500. Restitution totaling $2,560.00 has been received. Formal charges were not filed.

Helena/West Helena School District Special Reports (Audit Period: 7/18/97-4/30/01):

2001 - $21,140.25 in personal disbursements, unauthorized salary disbursements, and undocumented disbursements. Rodney E. Echols was identified as the individual responsible. Restitution totaling $479.00 has been received. Formal charges were not filed.

2001 - $5,638.43 in personal disbursements and undocumented disbursements. Various individuals were implicated in amounts less than $2,500. Restitution totaling $1,520.00 has been received. Formal charges were not filed.

2001 - $4,273.50 in duplicate payments to a vendor identified as A Travel Agency. Total restitution has been received. Formal charges were not filed.

1st Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Phillips County (continued)

Phillips County (Audit Period: 1/1/00-12/31/00):

2003 - $25,365.00 in receipts over deposits. Ronnie White was identified as the individual responsible. White currently retains his position as the elected Sheriff/Collector for Phillips County.

Note: No shortages in excess of $2,500 were reported in St. Francis and Woodruff Counties.

Second Judicial District

Clay, Craighead, Crittenden, Greene, Mississippi, and Poinsett Counties

Judicial District Population: 265,502 10 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Craighead County

Arkansas State University (Audit Period: 7/1/99-6/30/00):

2001 - $8,255.43 in receipts over deposits. Linn Light was identified as the individual responsible. Restitution in the amount of $1,300.00 was received prior to the bond payment. The Bond Board reimbursed losses totaling $5,665.43. Formal charges were not filed.

Craighead County (Audit Period: 1/1/00-12/31/00):

2002 - $2,732.66 in personal disbursements. Val Price was identified as the individual responsible. Restitution in the amount of $2,533.66 was received. Formal charges were not filed.

Crittenden County

City of West Memphis (Audit Period: 5/1/98-4/30/01):

2002 - $87,321.00 in receipts over deposits. Lisa Thweat pled guilty to theft of property charges on March 3, 2003. Thweat was sentenced to five (5) years probation and ordered to pay restitution in the amount of $13,440.00. The Bond Board reimbursed losses totaling $86,321.00. Restitution totaling $1,335.00 has been received leaving a balance of $12,105.00.

Crawfordsville School District (Audit Period: 7/1/00-6/30/01):

2002 - $6,661.44 in undocumented disbursements and petty cash fund shortage. Lucy Harris pled guilty to theft of property charges on February 3, 2003. Harris was sentenced to ten (10) years probation and ordered to pay restitution in the amount of $6,661.44. The Bond Board reimbursed losses totaling $5,661.44. Restitution totaling $300.00 has been received leaving a balance of $6,361.44.

2nd Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Crittenden County (continued)

Crittenden County (Audit Period: 1/1/01-12/31/01):

2003 - $25,562.00 in receipts over deposits. Kenneth Watson and Robert Bretherick were identified as the individuals responsible. The shortage is still under active investigation.

Town of Horseshoe Lake (Audit Period: 1/1/99-12/31/00):

2002 - $31,699.91 in undocumented disbursements. Kacy Curle pled guilty to theft of property charges on March 10, 2003. Curle was sentenced to eleven (11) years probation and ordered to pay restitution in the amount of $31,699.91. The Bond Board reimbursed losses totaling $30,699.91. Restitution totaling $1,620.00 has been received leaving a balance of $30,079.91.

Town of Jericho (Audit Period: 1/1/99-12/31/00):

2002 - $5,558.82 in unaccounted for fixed assets. Suspect unidentified.

Poinsett County

City of Harrisburg (Audit Period: 1/1/01-12/31/02):

2003 - $63,756.44 in undocumented disbursements, personal disbursements, and receipts over deposits. Deborah Costner pled guilty to theft of property charges on August 3, 2004. Costner was sentenced to ten (10) years probation and ordered to pay restitution in the amount of $63,756.44. The Bond Board reimbursed losses totaling $62,756.44. No restitution payments have been received.

Note: No shortages in excess of $2,500 were reported in Clay, Greene, and Mississippi Counties.

Third Judicial District

Jackson, Lawrence, Randolph, and Sharp Counties

Judicial District Population: 70,628 3 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Note: No shortages in excess of $2,500 were reported in the Third Judicial District.

Fourth Judicial District

Madison and Washington Counties

Judicial District Population: 184,037 6 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Washington County

Arkansas State Police (Audit Period: 7/1/00-6/30/01):

2002 - $2,700.00 in theft of property. Linda Barham pled guilty to felony theft of property charges on July 14, 2003. Barham was sentenced to 120 days incarceration, five (5) years probation, and ordered to pay restitution in the amount of $2,699.50. The Bond Board reimbursed losses totaling $1,700.00. Restitution totaling $900.00 has been received leaving a balance of $1,799.50.

City of Prairie Grove (Audit Period: 1/1/00-12/31/00):

2002 - $34,944.74 in altered receipts. Paula Renee Bennett pled guilty to felony theft of property and computer fraud charges on May 23, 2002. Bennett was sentenced to sixteen (16) years incarceration with fourteen and one-half (14-1/2) years suspended and ordered to pay restitution in the amount of $2,952.00. The Bond Board reimbursed losses totaling $30,992.74. Total restitution has been received.

Note: No shortages in excess of $2,500 were reported in Madison County.

Fifth Judicial District

Franklin, Johnson, and Pope Counties

Judicial District Population: 96,780 4 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Franklin County

City of Altus (Audit Period: 1/1/00-7/19/02):

2003 - $3,211.00 in revenue not receipted and receipts over deposits. Marty Harris was convicted of felony theft of property on January 22, 2004. Harris was sentenced to five (5) years probation and ordered to pay restitution in the amount of $3,194.00. The Bond Board reimbursed losses totaling $2,211.00. No restitution payments have been received.

City of Ozark (Audit Period: 1/1/00-7/31/02):

2003 - $69,418.07 in misappropriated, questioned, or inadequately documented expenditures. Todd Timmerman pled guilty to felony theft of property, forgery, and misdemeanor theft of property charges on March 3, 2003. Timmerman was sentenced to four (4) years incarceration and five (5) years probation. Restitution totaling $39,477.30 was received prior to his guilty plea. The Bond Board reimbursed losses totaling $28,940.77.

Franklin County (Audit Period: 1/1/01-12/31/01):

2003 - $23,537.09 in receipts over deposits. Debbie Elder pled guilty to felony theft of property charges on September 4, 2003. Elder was sentenced to six (6) years incarceration with five (5) years suspended, and based upon additional investigation was ordered to pay restitution in the amount of $24,184.39. The Bond Board reimbursed losses totaling $22,447.09. Restitution totaling $340.00 has been received leaving a balance of $23,844.39.

Johnson County

Clarksville School District (Audit Period: 7/1/01-6/30/02):

2003 - $3,905.70 in receipts over deposits. Judy Felkins was identified as the individual responsible. Total restitution has been received. Formal charges were not filed.

5th Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Pope County

Arkansas Tech University (Audit Period: 8/1/99-6/30/02):

2002 - $58,558.00 in altered and forged checks. Sonya Jones pled guilty to theft of property charges on October 6, 2003. Jones was sentenced to five (5) years incarceration with three (3) years suspended and ordered to pay restitution in the amount of $55,658.19. The Bond Board reimbursed losses totaling $57,558.19. Restitution totaling $1,413.37 has been received leaving a balance of $54,244.82.

Russellville School District (Audit Period: 7/1/99-6/30/00):

2001 - $20,725.00 of furnished equipment not meeting bid specifications. Supreme Fixture Company, Inc. was identified as the responsible party. Total restitution has been received. Formal charges were not filed.

Sixth Judicial District

Perry and Pulaski Counties

Judicial District Population: 375,028 17 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Pulaski County

Arkansas Department of Community Punishment (Audit Period: 1/1/98-12/31/98):

2001 - $72,607.00 in altered/forged checks. Restitution totaling $2,605.00 was received prior to the bond payment. The Bond Board reimbursed losses totaling $69,002.00. The following five (5) persons were identified as the individuals responsible.

Tonya Hamilton pled guilty to theft of property, forgery, and tampering charges on April 17, 2002. Hamilton was sentenced to nine (9) years probation and ordered to pay restitution in the amount of $36,002.00. Restitution totaling $1,090.00 has been received leaving a balance of $34,912.00.

Terri Townsend pled guilty to theft of property charges on June 5, 2002. Townsend was sentenced to eight (8) years probation and ordered to pay restitution in the amount of $18,775.00. Restitution totaling $200.00 has been received leaving a balance of $18,575.00.

Belinda Shavers Cole pled guilty to theft of property charges on June 5, 2002. Cole was sentenced to five (5) years probation and ordered to pay restitution in the amount of $8,418.00. Restitution totaling $2,368.00 has been received leaving a balance of $6,050.00.

Eric Von Ray pled guilty to theft of property charges on June 5, 2002. Von Ray was sentenced to five (5) years probation and ordered to pay restitution in the amount of $4,808.00. No restitution payments have been received.

Pam Henry pled guilty to theft of property charges on June 5, 2002. Henry was sentenced to one (1) year probation and ordered to pay restitution in the amount of $3,000.00. Total restitution has been received.

Arkansas Fire Protection Licensing Board (Audit Period: 7/1/98-6/30/00):

2001 - $11,970.00 theft of property. Dana Wilkins pled guilty to theft of property charges. Wilkins received a one (1) year suspended sentence. Total restitution has been received.

6th Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Pulaski County (continued)

Arkansas Livestock and Poultry Commission (Audit Period: 1/1/00-12/31/00):

2001 - $36,617.00 in receipts over deposits. Suspect unidentified.

Arkansas State Highway and Transportation Department (Audit Period: 7/1/01-6/30/02):

2003 - $413,677.00 in theft of property. Terry Nanney pled guilty in Federal Court to conspiracy to commit wire fraud, mail fraud, money laundering, and evading personal income tax charges on September 6, 2002. Nanney was sentenced to forty-one (41) months in prison, thirty-six (36) months probation, and ordered to pay restitution in the amount of $413,674.00. The Bond Board reimbursed losses totaling $249,000.00, the maximum policy limit per occurrence. Restitution totaling $288,029.23 has been received leaving a balance of $125,644.77.

2003 - $41,234.00 in duplicate and altered invoices. Omni Construction LLC was identified as the responsible party. Formal charges were not filed.

City of Maumelle (Audit Period: 1/1/02-12/31/02):

2003 - $2,635.58 in personal disbursements. Burch Johnson was identified as the individual responsible. The Prosecuting Attorney’s office was unable to locate the related case file. Johnson currently retains his elected position as Mayor for the City of Maumelle.

Department of Finance and Administration – Revenue Division – Office of Child Support Enforcement (Audit Period: 7/1/01-6/30/02):

2003 - $16,139.00 in non-booked receivables. Verkeytia Harris, Carla Brown, April Smith, and Janice Burgess were identified as the individuals responsible. The Prosecuting Attorney’s office was unable to locate the related case file.

Department of Finance and Administration – Revenue Division – Office of Financial and Management Services – Cashier Section (Audit Period: 7/1/00-6/30/01):

2002 - $17,802.00 in altered/forged checks. Lori Parker pled guilty to theft of property charges on August 24, 2001. Parker was sentenced to seven (7) years probation and ordered to pay restitution in the amount of $16,536.14. The Bond Board reimbursed losses totaling $16,802.00. No restitution payments have been received.

6th Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Pulaski County (continued)

Department of Human Services (Audit Period: 7/1/00-6/30/01):

2002 - $854,130.00 in duplicate invoices in the childcare programs. This case was referred to the Federal Bureau of Investigation and the United States Attorney’s office. The following twelve (12) persons were identified as the individuals responsible.

Sharita Hobbs pled guilty in Federal Court to aiding and abetting to commit wire fraud charges on October 7, 2004. Hobbs was sentenced to thirty (30) months incarceration, thirty-six (36) months probation, and ordered to pay restitution in the amount of $853,697.80. No restitution payments have been received.

Gloria Parham pled guilty in Federal Court to felony theft of government funds charges on February 23, 2004. Parham was sentenced to three (3) years probation and ordered to pay restitution in the amount of $302,924.80. Restitution totaling $350.00 has been received leaving a balance of $302,574.80.

Patricia Hicks pled guilty in Federal Court to felony theft of government funds charges on October 31, 2004. Hicks was sentenced to one (1) year incarceration, three (3) years probation, and ordered to pay restitution in the amount of $173,801.00. Restitution totaling $50.00 has been received leaving a balance of $173,751.00.

Necole Burton pled guilty in Federal Court to aiding and abetting to commit wire fraud charges on October 7, 2004. Burton was sentenced to six (6) months home detention, three (3) years probation, and ordered to pay restitution in the amount of $129,261.00. No restitution payments have been received.

Jaye Jarrett pled guilty in Federal Court to felony theft of government funds charges on August 5, 2004. Jarrett was sentenced to one (1) year home detention, five (5) years probation, and ordered to pay restitution in the amount of $106,891.00. No restitution payments have been received.

Harry Hall pled guilty in Federal Court to felony theft of government funds charges on October 8, 2004. Hall was sentenced to three (3) years probation and ordered to pay restitution in the amount of $80,432.00. No restitution payments have been received.

Christopher Hall pled guilty in Federal Court to felony theft of government funds charges on October 8, 2004. Hall was sentenced to three (3) years probation and ordered to pay restitution in the amount of $80,432.00. No restitution payments have been received.

6th Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Pulaski County (continued)

Department of Human Services (Audit Period: 7/1/00-6/30/01, continued):

Carla Dobbins pled guilty in Federal Court to felony theft of government funds charges on October 7, 2004. Dobbins was sentenced to three (3) years probation and ordered to pay restitution in the amount of $53,494.00. No restitution payments have been received.

Bridget Jones pled guilty in Federal Court to felony theft of government funds charges on October 7, 2004. Jones was sentenced to six (6) months home detention, three (3) years probation, and ordered to pay restitution in the amount of $45,999.00. No restitution payments have been received.

Tracy Banks pled guilty in Federal Court to charges of aiding and abetting to embezzle money from the United States on October 7, 2004. Banks was sentenced to six (6) months home detention, three (3) years probation, and ordered to pay restitution in the amount of $41,327.00. No restitution payments have been received.

Jacquelyn Burton pled guilty in Federal Court to felony theft of government funds charges on February 24, 2004. Burton was sentenced to three (3) years probation and ordered to pay restitution in the amount of $26,377.00. Restitution totaling $720.00 has been received leaving a balance of $25,657.00.

Andrea Willis pled guilty in Federal Court to aiding and abetting to commit mail fraud charges on October 7, 2004. Willis was sentenced to three (3) years probation and ordered to pay restitution in the amount of $22,452.00. No restitution payments have been received.

2002 - $191,088.00 in theft of property. Patricia Rhodes pled guilty in Federal Court to theft of property charges on July 22, 2003. Rhodes was sentenced to one (1) year of house arrest, five (5) years probation, and ordered to pay restitution in the amount of $191,097.67. The Bond Board reimbursed losses totaling $188,670.37. Restitution totaling $2,525.00 has been received leaving a balance of $188,572.67.

2002 - $64,011.00 in Transitional Employment Assistance checks stolen and cashed. The agency’s bank reimbursed losses totaling $37,426.00. Suspect unidentified. Formal charges were not filed.

2002 - $9,960.00 in conflict of interest payments. Randy Dennis was identified as the individual responsible. The Prosecuting Attorney’s office was unable to locate the related case file.

6th Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Pulaski County (continued)

Department of Human Services Investigative Report (Audit Period: 1/1/01-8/31/02):

2003 - $80,972.00 over-billing of Medicaid. This case was referred to the Arkansas Attorney General’s Office. Ann-Marie Allen, owner of Therapy Time, Inc., pled nolo contendre to a misdemeanor charge on August 8, 2004. Allen was sentenced to one (1) year probation and ordered to pay a $1,500.00 civil penalty. The Medicaid provider number for Therapy Time, Inc. was terminated.

Department of Workforce Education – Arkansas Rehabilitation Services (Audit Period: 7/1/01-6/30/02):

2003 - $6,875.00 in personal and unauthorized disbursements. Carla Becker was identified as the individual responsible. The Prosecuting Attorney’s office was unable to locate the related case file.

Note: No shortages in excess of $2,500 were reported in Perry County.

Seventh Judicial District

Grant and Hot Spring Counties

Judicial District Population: 47,607 2 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Hot Spring County

Ouachita Technical College (Audit Period: 7/1/99-6/30/00):

2001 - $18,051.00 in unauthorized salary disbursements and personal disbursements. Ken Martin was identified as the individual responsible. Formal charges were not filed.

Note: No shortages in excess of $2,500 were reported in Grant County.

Eighth North Judicial District

Hempstead and Nevada Counties

Judicial District Population: 33,069 2 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Nevada County

Prescott School District (Audit Period: 7/1/99-6/30/00):

2001 - $3,325.00 in personal disbursements. William Souder was identified as the individual responsible. Total restitution has been received. Formal charges were not filed.

Note: No shortages in excess of $2,500 were reported in Hempstead County.

Eighth South Judicial District

Lafayette and Miller Counties

Judicial District Population: 50,202 3 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Miller County

Bright Star School District (Audit Period: 7/1/99-6/30/00):

2001 - $2,877.00 in undocumented disbursements, personal disbursements, and employee/student loans. Sammy Bray was identified as the individual responsible. Restitution totaling $2,268.00 has been received. Formal charges were not filed.

City of Garland (Audit Period: 1/1/00-2/28/02):

2002 - $57,544.78 in receipts over deposits and unauthorized salary disbursements. The following three (3) persons were identified as the individuals responsible.

Debra A. Rooters pled guilty to felony theft of property charges on September 2, 2004. Rooters was sentenced to ten (10) years probation and ordered to pay restitution in the amount of $46,634.52. The Bond Board reimbursed losses totaling $45,634.52. Restitution totaling $225.00 has been received leaving a balance of $46,409.52.

Linda D. Cutchall pled guilty to felony theft of property charges on September 9, 2003. Cutchall was sentenced to ten (10) years probation and ordered to pay restitution in the amount of $9,131.98. Total restitution has been received.

Calvin Davis pled guilty to felony theft of property charges on March 19, 2004. Davis was sentenced to three (3) years probation and ordered to pay restitution in the amount of $1,778.28. No restitution payments have been received.

8th South Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Miller County (continued)

City of Garland (Audit Period: 1/1/00-12/31/01):

2003 - $74,831.00 in personal and undocumented disbursements. The following three (3) persons were identified as the individuals responsible.

Debra A. Rooters pled guilty to felony theft of property charges on September 2, 2004. Rooters was sentenced to ten (10) years probation and ordered to pay restitution in the amount of $14,010.88. The Bond Board reimbursed losses totaling $9,173.00. Restitution totaling $8,465.00 has been received leaving a balance of $5,545.88.

Various individuals were implicated in amounts less than $2,500. The Bond Board reimbursed losses totaling $909.00.

City of Texarkana (Audit Period: 2/97-7/00):

2001 - $119,871.00 in receipts over deposits and altered receipts. Sheila Wimberly pled guilty to felony theft of property charges on April 8, 2002. Wimberly was sentenced to twenty (20) years probation and ordered to pay restitution in the amount of $90,495.00. The Bond Board reimbursed losses totaling $37,680.28 and the City recovered an additional $25,000.00 bond payment from Gallagher/Bassett. Restitution totaling $21,665.00 has been received leaving a balance of $68,830.00.

Miller County (Audit Period: 1/1/01-12/31/01):

2003 - $65,386.00 in conflict-of-interest payments. Jimmy McCauley pled guilty to felony theft of property charges on July 20, 2004. McCauley was sentenced to twenty (20) years incarceration with fifteen (15) years suspended and ordered to pay restitution in the amount of $59,258.00. No restitution payments have been received.

2003 - $18,178.00 in duplicated/altered invoices and disbursements without services rendered. Jimmy Wise pled guilty to felony theft of property charges on February 10, 2004. Wise was sentenced to five (5) years probation and ordered to pay restitution in the amount of $18,177.75. Restitution totaling $15,665.00 has been received leaving a balance of $2,512.75.

8th South Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Miller County (continued)

Texarkana School District (Audit Period: 7/1/01-6/30/02):

2002 - $18,066.00 in receipts over deposits and revenue not receipted. Patty Gaddis pled guilty to theft of property charges on January 27, 2004. Gaddis was sentenced to five (5) years probation and ordered to pay restitution in the amount of $18,065.62. Total restitution has been received.

Note: No shortages in excess of $2,500 were reported in Lafayette County.

Ninth East Judicial District

Clark County

Judicial District Population: 23,581 1 Circuit Judge

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Clark County

City of Arkadelphia (Audit Period: 1/1/99-12/31/99):

2001 - $6,917.26 in unauthorized salary disbursements. Jim McAlister was identified as the individual responsible. Formal charges were not filed.

City of Caddo Valley (Audit Period: 1/1/01-12/31/99):

2003 - $17,339.33 in insufficient personal checks and receipts over deposits. Rhonda Rutherford was convicted of theft of property charges on December 2, 2004. Rutherford was sentenced to five (5) years probation and ordered to pay restitution in the amount of $13,714.33. No restitution payments have been received.

Ninth West Judicial District

Howard, Little River, Pike, and Sevier Counties

Judicial District Population: 54,800 2 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Note: No shortages in excess of $2,500 were reported in the Ninth West Judicial District.

Tenth Judicial District

Ashley, Bradley, Chicot, Desha, and Drew Counties

Judicial District Population: 82,573 5 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Ashley County

Ashley County Board of Education (Audit Period: 7/1/99-6/30/00):

2001 - $31,574.00 in personal disbursements. Melba Graves was identified as the individual responsible. Formal charges were not filed.

Chicot County

Chicot County (Audit Period: 1/1/00-12/31/00):

2002 - $28,139.95 in receipts over deposits. Jean Avila pled guilty to theft of property charges on March 26, 2002. Restitution totaling $15,000.00 was received prior to sentencing. Avila was sentenced to three (3) years probation and ordered to pay restitution in the amount of $13,139.95. The Bond Board reimbursed losses totaling $11,489.95. Restitution totaling $10,525.00 has been received leaving a balance of $2,614.95.

Chicot County (Audit Period: 1/1/01-12/31/02):

2003 - $9,213.09 in receipts over deposits. Rose Raborn pled guilty to felony theft of property charges on March 15, 2004. Raborn received a ten (10) year suspended sentence and was ordered to pay restitution in the amount of $9,213.00. The Bond Board reimbursed losses totaling $8,213.09. No restitution payments have been received.

2003 - $997,435.46 in unauthorized disbursements. Mack Ball, Sr. was identified as the individual responsible. Grant funds from the Economic Development of Arkansas Fund Commission were not used for the purposes of the grant. Formal charges were not filed.

10th Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Desha County

City of Dumas (Audit Period: 8/13/96-3/15/02):

2002 - $30,938.64 in personal and undocumented disbursements, conflict-of- interest disbursements, incorrectly paid entities, and duplicate/altered invoices. Clay Oldner was convicted of abuse of office and witness tampering on October 24, 2003. Oldner was ordered to pay restitution in the amount of $1,750.00. Restitution totaling $1,750.00 has been received. Oldner currently retains his elected position as Mayor for the City of Dumas.

City of Dumas (Audit Period: 1/1/01-12/31/01):

2003 - $3,700.00 petty cash/change fund shortage. Suspect unidentified.

City of McGehee (Audit Period: 10/1/99-9/30/01):

2002 - $2,588.00 in receipts over deposits. Donna Mays was identified as the individual responsible. Total restitution has been received. Formal charges were not filed.

Dumas School District (Audit Period: 7/1/99-6/30/01):

2001 - $75,225.11 in personal disbursements and unauthorized salary disbursements. Gayle York and Christie Walker were convicted of theft of property and tax evasion on February 14, 2003. Walker was sentenced to five (5) years probation and ordered to pay restitution in the amount of $41,155.73. York was sentenced to five (5) years probation and ordered to pay restitution in the amount of $24,293.08. The Bond Board reimbursed losses totaling $74,203.00. Walker has paid restitution totaling $355.00 leaving a balance of $40,800.73. York has paid restitution totaling $489.08 leaving a balance of $23,804.00.

2001 - $6,626.68 in personal disbursements. Don McHan was identified as the individual responsible. Formal charges were not filed.

McGehee School District (Audit Period: 7/1/01-6/30/02):

2003 - $3,679.49 in personal disbursements and accommodation purchases. Bobby Ashley was identified as the individual responsible. Total restitution has been received. Formal charges were not filed. Ashley currently retains his appointed position as Superintendent of the McGehee School District.

31 10th Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Desha County (continued)

Town of Reed (Audit Period: 7/1/01-6/30/02):

2002 - $47,416.39 in undocumented disbursements, unauthorized salary disbursements, insufficient personal checks, and receipts over deposits. Jennifer Chaney pled guilty to theft of property charges on November 18, 2002. Chaney was given a seven (7) year suspended sentence and ordered to pay restitution in the amount of $33,925.28. Restitution totaling $392.09 was received prior to the bond payment. The Bond Board reimbursed losses totaling $30,268.95. Restitution totaling $3,655.00 has been received leaving a balance of $30,270.28.

Drew County

Monticello School District (Audit Period: 7/1/99-12/31/01):

2002 - $102,643.00 in personal disbursements and theft of property. Robert Kizer pled guilty to abuse of office charges on May 9, 2003. Kizer was given a six (6) month suspended sentence and ordered to pay restitution in the amount of $2,917.00. Restitution totaling $2,917.00 has been received.

Note: No shortages in excess of $2,500 were reported in Bradley County.

32 Eleventh East Judicial District

Arkansas County

Judicial District Population: 20,158 1 Circuit Judge

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Arkansas County

City of St. Charles (Audit Period: 7/1/00-6/30/01):

2003 - $18,237.66 in undocumented disbursements, unauthorized salary disbursements, and receipts over deposits. Paula Jones was identified as the individual responsible. Total restitution has been received. Formal charges were not filed.

Humphrey School District (Audit Period: 7/1/00-6/30/01):

2002 - $7,669.95 in personal disbursements and undocumented disbursements. Donald Henley was identified as the individual responsible. Total restitution has been received. Formal charges were not filed. Henley currently retains his appointed position as Superintendent of the Humphrey School District.

2002 - $7,762.73 in personal, undocumented, and conflict-of-interest disbursements. Various individuals were implicated in amounts less than $2,500.00. Restitution totaling $3,230.33 has been received.

Stuttgart School District (Audit Period: 7/1/00-6/30/01):

2002 - $4,902.00 in personal disbursements. Linda Scott was identified as the individual responsible. Total restitution has been received. Formal charges were not filed. Scott currently retains her appointed position as Superintendent of the Stuttgart School District.

Eleventh West Judicial District

Jefferson and Lincoln Counties

Judicial District Population: 97,292 6 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Jefferson County

Altheimer Unified School District (Audit Period: 1/1/93-1/21/97):

2002 - $145,513.11 in theft of property. Cortez Smith, Jr. and Bobby Davis pled guilty in Federal Court to filing false income tax returns in August 2000. Smith entered into an agreement on June 20, 2002 to pay restitution in the amount of $50,000.00 to the Bond Board. The Bond Board reimbursed losses totaling $144,513.11. Restitution totaling $20,000.00 has been received leaving a balance of $30,000.00.

Department of Human Services – Division of Services for the Blind (Audit Period: 7/1/00-6/30/01):

2002 - $9,684.00 in undocumented and personal disbursements. Debbie Carroll was identified as the individual responsible. The shortage is still under active investigation.

Jefferson County (Audit Period: 1/1/00-12/31/00):

2002 - $17,872.39 in receipts over deposits. Lisa Hubanks pled guilty to felony theft of property charges on January 13, 2003. Hubanks was sentenced to two (2) years probation and ordered to pay restitution in the amount of $17,792.15. Restitution totaling $17,792.15 has been received.

University of Arkansas at Pine Bluff (Audit Period: 7/1/96-6/30/97):

2003 - $3,412.26 in personal disbursements and receipts over deposits. John Fluker was identified as the person responsible. Formal charges were not filed.

Lincoln County

Gould School District (Audit Period: 7/1/99-6/30/00):

2001 - $13,582.00 in receipts over deposits. Janice Tillman was identified as the individual responsible. Theft of property charges were nolle prossed on May 28, 2004 after total restitution was received.

Twelfth Judicial District

Sebastian County

Judicial District Population: 117,252 6 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Sebastian County

Arkansas Game and Fish Commission (Audit Period: 7/1/00-6/30/01):

2002 - $2,510.00 theft of property in the Fort Smith Office. Suspect unidentified.

Fort Chaffee Redevelopment Authority (Audit Period: 1/1/01-12/31/01):

2002 - $11,935.22 in undocumented disbursements, personal disbursements, and accommodation purchases. Phillip Reeves was identified as the individual responsible. Restitution totaling $11,591.16 has been received. Formal charges were not filed.

Thirteenth Judicial District

Calhoun, Cleveland, Columbia, Dallas, Ouachita, and Union Counties

Judicial District Population: 120,603 6 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Calhoun County

City of Thornton (Audit Period: 7/1/00-1/31/01):

2002 - $11,832.04 in receipts over deposits. Christie Enlow pled guilty to felony theft of property charges on November 21, 2002. Enlow was sentenced to five (5) years probation and ordered to pay restitution in the amount of $11,832.04. The Bond Board reimbursed losses totaling $10,832.04. No restitution payments have been received.

Note: No shortages in excess of $2,500 were reported in Cleveland, Columbia, Dallas, Ouachita, and Union Counties.

Fourteenth Judicial District

Baxter, Boone, Marion, and Newton Counties

Judicial District Population: 98,678 4 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Baxter County

City of Lakeview (Audit Period: 1/1/01-12/31/02):

2001 - $5,564.00 in receipts over deposits and withholding discrepancies. Christine Jenkins pled guilty to felony theft of property charges on July 29, 2004. Jenkins was sentenced to three (3) years probation. Total restitution has been received.

Boone County

Ozarks Unlimited Resources Cooperative – Environmental and Spatial Technology (EAST) Initiative Special Reports (Audit Period: 7/1/99-9/26/01):

2001 - $466,374.00 in undocumented disbursements. Leon McLean, Steve Brewer, and Tim Stephenson were identified as the individuals responsible. Restitution totaling $313,488.00 has been received. Formal charges were not filed.

2002 - $27,579.00 in conflict-of-interest disbursements and unauthorized salary disbursements. Leon McLean, Steve Brewer, Tim Stephenson, Bridget Chitwood, James Isom, and Bruce Jones were identified as the individuals responsible. Formal charges were not filed.

Note: No shortages in excess of $2,500 were reported in Marion and Newton Counties.

Fifteenth Judicial District

Conway, Logan, Scott, and Yell Counties

Judicial District Population: 75,715 3 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Conway County

Department of Finance and Administration – Revenue Division – Office of Financial and Management Services – Cashiers Section (Audit Period: 7/1/98-6/30/00):

2001 - $22,295.85 in receipts over deposits. Jennifer Little and Michelle Poteete pled guilty to felony theft of property charges on May 8, 2001. Little was sentenced to five (5) years probation and ordered to pay restitution in the amount of $9,471.56. Poteete was ordered to pay restitution in the amount of $12,824.29. Total restitution has been received. Poteete’s case has been expunged.

Yell County

City of Havana (Audit Period: 1/1/00-6/20/01):

2002 - $8,220.39 in undocumented and personal disbursements and receipts over deposits. Tommy Fink was identified as the individual responsible. The shortage is still under active investigation.

Yell County (Audit Period: 1/1/01-12/31/01):

2002 - $4,183.50 in receipts over deposits. Mary Lakner pled guilty to theft of property charges on February 28, 2003. Restitution totaling $4,183.50 was received prior to sentencing. Lakner was sentenced to three (3) years probation and ordered to pay additional restitution in the amount of $1,870.00. Total restitution has been received.

Note: No shortages in excess of $2,500 were reported in Logan and Scott Counties.

38 Sixteenth Judicial District

Cleburne, Fulton, Independence, Izard, and Stone Counties

Judicial District Population: 95,615 4 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Cleburne County

Department of Finance and Administration – Revenue Division – Office of Financial and Management Services – Cashiers Section (Audit Period: 7/1/00-6/30/01):

2002 - $3,238.00 in receipts over deposits. Stacy Goff pled guilty to felony theft of property charges on July 31, 2002. Goff was sentenced to four (4) years probation and ordered to pay restitution in the amount of $3,358.77. The Bond Board reimbursed losses totaling $1,943.00. Restitution totaling $1,090.00 has been received leaving a balance of $2,268.77.

Heber Springs School District (Audit Period: 7/1/00-6/30/01):

2002 - $7,678.00 in unauthorized salary disbursements and personal disbursements. Forest L. Kyle was identified as the individual responsible. Formal charges were not filed.

Quitman School District (Audit Period: 7/1/99-6/30/00):

2001 - $14,676.49 in receipts over deposits. Michael Ball pled guilty to felony theft of property charges on March 11, 2002. Ball was sentenced to five (5) years probation and ordered to pay restitution in the amount of $14,678.49. Total restitution has been received.

Independence County

Newark School District (Audit Period: 7/1/01-6/30/02):

2003 - $4,741.71 in receipts over deposits. Phyllis Barber pled guilty to felony theft of property charges on May 10, 2004. Barber was sentenced to five (5) years probation and ordered to pay restitution in the amount of $4,741.71. Total restitution has been received.

Note: No shortages in excess of $2,500 were reported in Fulton, Izard, and Stone Counties.

Seventeenth Judicial District

Prairie and White Counties

Judicial District Population: 79,325 3 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

White County

City of Searcy (Audit Period: 1/1/02-12/31/02):

2003 - $40,613.00 in receipts over deposits. Jennifer Ladyman was convicted of felony theft of property charges on May 6, 2003. Ladyman was sentenced to five (5) years probation and ordered to pay restitution in the amount of $40,613.00. Total restitution has been received.

Note: No shortages in excess of $2,500 were reported in Prairie County.

Eighteenth East Judicial District

Garland County

Judicial District Population: 91,188 4 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Garland County

City of Hot Springs Police Department (Audit Period: 1/1/98-12/31/99):

2002 - $31,757.80 in unauthorized salary disbursements. Ruth Tyler pled guilty to felony theft of property charges on July 9, 2002. Tyler was sentenced to five (5) years incarceration and ordered to pay restitution in the amount of $31,758.80. The Bond Board reimbursed losses totaling $25,757.80. Restitution totaling $5,410.00 has been received leaving a balance of $26,348.80.

City of Mountain Pine (Audit Period: 1/1/98-12/31/99):

2001 - $11,250.00 in unauthorized salary disbursements. Andy Lee Johnson was identified as the individual responsible. Formal charges were not filed.

City of Mountain Pine (Audit Period: 1/1/98-9/30/00):

2001 - $47,993.43 in unauthorized salary disbursements and personal disbursements. Edwin White pled guilty to felony theft of property charges on June 18, 2002. White was given a ten (10) year suspended sentence and ordered to pay restitution in the amount of $25,000.00. The Bond Board reimbursed losses totaling $14,000.00 and the City recovered an additional $10,000.00 bond payment from Old Republic Surety Company. No restitution payments have been received.

Eighteenth West Judicial District

Montgomery and Polk Counties

Judicial District Population: 29,344 1 Circuit Judge

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Note: No shortages in excess of $2,500 were reported in the Eighteenth West Judicial District.

Nineteenth East Judicial District

Carroll County

Judicial District Population: 26,359 1 Circuit Judge

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Note: No shortages in excess of $2,500 were reported in the Nineteenth East Judicial District.

Nineteenth West Judicial District

Benton County

Judicial District Population: 172,003 5 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Benton County

City of Gravette (Audit Period: 1/1/00-12/31/00):

2002 - $4,200.00 in receipts over deposits. Melissa D. Hall was identified as the individual responsible. Total restitution has been received. Formal charges were not filed.

Pea Ridge School District (Audit Period: 7/1/01-6/30/02):

2003 - $2,787.29 in personal disbursements and duplicate checks cashed. Virgil Freeman was identified as the individual responsible. The shortage is still under active investigation.

Twentieth Judicial District

Faulkner, Searcy, and Van Buren Counties

Judicial District Population: 116,381 4 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Faulkner County

Town of Twin Groves (Audit Period: 1/1/01-12/31/02):

2002 - $5,004.00 in unauthorized salary disbursements. Ann Criswell was identified as the individual responsible. Formal charges were not filed.

University of Central Arkansas (Audit Period: 7/1/01-6/30/02):

2002 - $44,280.25 in theft of property. Carl Garrison pled guilty to theft of property charges on April 17, 2002. Garrison was sentenced to ten (10) years probation and ordered to pay restitution in the amount of $42,011.00. The Bond Board reimbursed losses totaling $19,751.60. Restitution totaling $22,190.00 has been received leaving a balance of $19,821.00.

Vilonia School District (Audit Period: 7/1/01-6/30/02):

2003 - $4,964.00 in theft of inventory. The Bond Board reimbursed losses totaling $3,964.00. The following three (3) persons were identified as the individuals responsible.

Georgia Faye Sparks pled guilty to felony theft of property charges on November 3, 2003. Sparks was sentenced to five (5) years probation and ordered to pay restitution in the amount of $350.00. Restitution totaling $350.00 has been received.

Peggy Renay Verser pled guilty to felony theft of property charges on November 17, 2003 and was sentenced to four (4) years probation. John R. Brady pled guilty to felony theft of property charges on November 14, 2003 and was sentenced to five (5) years probation. Verser and Brady were ordered to pay restitution in the amount of $4,964.38 jointly and severally. Restitution totaling $209.81 has been received leaving a balance of $4,754.57.

20th Judicial District (continued)

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Van Buren County

Shirley School District (Audit Period: 7/1/00-6/30/01):

2002 - $8,791.00 in receipts over deposits. Juli Phillips pled guilty to theft of property charges on December 18, 2003. Phillips was sentenced to three (3) years probation, and based upon additional investigation ordered to pay restitution in the amount of $13,390.00. The Bond Board reimbursed losses totaling $7,696.00. No restitution payments have been received.

Note: No shortages in excess of $2,500 were reported in Searcy County.

Twenty-first Judicial District

Crawford County

Judicial District Population: 55,647 2 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Note: No shortages in excess of $2,500 were reported in the Twenty-first Judicial District.

Twenty-second Judicial District

Saline County

Judicial District Population: 87,554 3 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Saline County

City of Shannon Hills (Audit Period: 1/1/01-12/31/02):

2002 - $13,946.50 in receipts over deposits. Karen Brown was convicted of theft of property on December 10, 2003. Restitution totaling $13,946.50 was received prior to sentencing. Brown was sentenced to five (5) years incarceration and ordered to pay additional restitution in the amount of $1,925.00. No additional restitution payments have been received.

Paron School District (Audit Period: 7/1/00-6/30/01):

2002 - $3,392.06 in unauthorized salary disbursements and personal disbursements. Pam Keen was identified as the individual responsible. Total restitution has been received. Formal charges were not filed.

Twenty-third Judicial District

Lonoke County

Judicial District Population: 56,718 2 Circuit Judges

Shortages in Excess of $2,500 Filed by LJAC 2001 – 2003

Lonoke County

Carlisle School District (Audit Period: 7/1/99-6/30/00):

2001 - $34,837.52 in undocumented disbursements. Pamela Clay was convicted of theft of property on May 13, 2002. Clay was sentenced to ten (10) years incarceration and ordered to pay restitution in the amount of $34,837.52. The Bond Board reimbursed losses totaling $33,837.52. Restitution totaling $5,500.00 has been received leaving a balance of $29,337.52.

Lonoke County (Audit Period: 1/1/00-12/31/00):

2002 - $9,052.27 in undocumented disbursements and unaccounted for fixed assets. Charlie Martin and Harold Evans were each convicted of theft of property on June 30, 2003. Restitution totaling $2,810.76 was received prior to sentencing. Martin and Evans were each sentenced to one (1) year probation and ordered to pay restitution in the amount of $500.00. Total restitution has been received.

Lonoke School District (Audit Period: 7/1/99-6/30/00):

2001 - $15,033.53 in personal disbursements. Dwain East and Bill Trickey have been identified as the individuals responsible. Total restitution has been received. Formal charges were not filed. Trickey retains his appointed position as Transportation Director for the Lonoke School District.

Schedule 1

Number of Circuit Judges Assigned to Each Judicial District

Number of Judicial Number of Judicial Counties Circuit District Citizens per District Judges Population Court

Cross, Lee, Monroe, Phillips, 1st 5 102,075 20,415 St. Francis, and Woodruff Clay, Craighead, Crittenden, 2nd Greene, Mississippi, and 10 265,502 26,550 Poinsett Jackson, Lawrence, Randolph, 3rd 3 70,628 23,543 and Sharp 4th Madison and Washington 6 184,037 30,673 5th Franklin, Johnson, and Pope 4 96,780 24,195 6th Perry and Pulaski 17 375,028 22,060 7th Grant and Hot Spring 2 47,607 23,804 8th - North Hempstead and Nevada 2 33,069 16,535 8th - South Lafayette and Miller 3 50,202 16,734 9th - East Clark 1 23,581 23,581 Howard, Little River, Pike, and 9th – West 2 54,800 27,400 Sevier Ashley, Bradley, Chicot, Desha, 10th 5 82,573 16,515 and Drew 11th - East Arkansas 1 20,158 20,158 11th - West Jefferson and Lincoln 6 97,292 16,215 12th Sebastian 6 117,252 19,542 Calhoun, Cleveland, Columbia, 13th 6 120,603 20,101 Dallas, Ouachita, and Union Baxter, Boone, Marion, and 14th 4 98,678 24,670 Newton 15th Conway, Logan, Scott, and Yell 3 75,715 25,238 Cleburne, Fulton, 16th 4 95,615 23,904 Independence, Izard, and Stone 17th Prairie and White 3 79,325 26,442 18th - East Garland 4 91,188 22,797 18th - West Montgomery and Polk 1 29,344 29,344 19th - East Carroll 1 26,359 26,359 19th - West Benton 5 172,003 34,401 Faulkner, Searcy, and Van 20th 4 116,381 29,095 Buren 21st Crawford 2 55,647 27,824 22nd Saline 3 87,554 29,185 23rd Lonoke 2 56,718 28,359

TOTAL 115 2,725,714 23,702

Sources: Administrative Office of the Courts; United States Census Bureau

Schedule 2

Update of Restitution Balances Outstanding from Prior Audit

Judicial Restitution Restitution Restitution Entity Balance District Suspect Ordered Paid Paid (1998 - 2000) (2001 - 2003) Crittenden 2nd Jerry Driver $ 27,684.19 $ 3,074.00 $ 3,315.00 $ 21,295.19 County Huntsville 4th John Bass 60,219.00 30,109.50 30,109.50 0.00 School District Washington 4th Tanya Dobbs 42,951.14 8,161.14 9,115.00 25,675.00 County Franklin Tonda J. 5th 40,405.54 14,224.24 5,242.47 20,938.83 County Bates Franklin Christie 5th 3,237.74 2,877.74 360.00 0.00 County Childers DFA-Revenue Division- Tracy J. 6th 6,014.13 200.00 0.00 5,814.13 Cashiers Williams Office DFA-Office of Steven 6th Income Tax 3,875.85 325.00 3,550.85 0.00 Washington Administration Pulaski 6th Brian Williams 9,414.99 990.00 1,295.00 7,129.99 County Magnet Cove Harlan 7th 6,008.00 0.00 4,400.00 1,608.00 School District Buttrum Magnet Cove 7th Mary Young 6,008.00 0.00 5,400.00 608.00 School District 8th - South City of Fouke Sue Page 19,769.79 7,800.00 835.00 11,134.79 City of 9th - West Nancy Tong 6,815.17 5,315.17 1,500.00 0.00 Foreman City of 11th - West Linda Adams 77,500.00 27,965.00 2,050.00 47,485.00 Pine Bluff Bethel 13th City of Waldo 22,027.20 1,550.00 4,200.00 16,277.20 Flowers Ouachita 13th Ann Tollette 8,362.29 825.00 3,240.00 4,297.29 County Morrilton 15th Wastewater Eddie Mitchell 58,219.31 450.00 57,769.31* 0.00 Utility 15th Logan County Kim Green 36,751.98 9,915.00 2,550.00 24,286.98 City of 19th - East Michael Knott 8,138.00 1,280.00 3,497.00 3,361.00 Green Forest City of Traci 19th - East 2,698.00 1,307.00 1,391.00 0.00 Green Forest Chrisman 19th - West Benton County Julie Lawson 15,000.00 370.00 2,380.00 12,250.00 Ginnaya 19th - West City of Lowell 4,284.97 1,020.00 1,750.00 1,514.97 Harris

TOTAL $465,385.29 $117,758.79 $143,950.13 $203,676.37

DFA - Department of Finance and Administration * $57,219.31 dismissed by Circuit Judge’s order Sources: Prosecuting Attorneys, Probation Officers, County Clerks, and Circuit Clerks