JONESBORO, AR (KAIT) - The preliminary report into discrepancies in the Craighead County Clerk's Office were presented to quorum court members Tuesday night.
Senior Audit Manager at Goad and Company, Tamara Honeycutt, presented their findings, along with comments from the Arkansas Bureau of Legislative Audit to court members.
"There is a whole lot of errors going on," Honeycutt said. "The legislative audit has been raising red flags regarding the internal control, policies and procedures, at the County Clerk's Office since 2003."
Comments from the Arkansas Bureau of Legislative Audit and Goad and Company showed many problems stemming from years back.
"We noted that some of the payroll journals were not available...and many of them had discrepancies," Honeycutt said. Discrepancies that ranged anywhere from timeliness of when the payroll was submitted, to the dollar amounts submitted on those payroll tax deposits.
Honeycutt explained some of the reasons why dollar amounts were wrong on the deposits.
"Causes included math errors, which were numerous, federal and state deposits were interchanged."
New Craighead County Clerk, Kade Holliday told Region 8 News that changes they've made since he's taken office should keep these issues from happening in the future.
"We've updated our payroll system in general to a new system that is not DOS (disk operating system) based...it's current," Holliday explained. "And we've been working to get all the files transferred into it."
Holliday feels confident in the future of the clerk's office.
"With the implication of this new system, it should safeguard us against all the problems we've had in the past."
But, Honeycutt made it known to Justices of the Peace tonight that if in the future, the Arkansas Legislative Audit raises red flags against the County Clerk's office, someone must hold the clerk accountable.
"It appears that no one has been holdIng the county clerk accountable for those findings," Honeycutt said. "There should be some accountability for what they're [Arkansas Legislative Audit] trying to tell you."
During their investigation, Goad and Company did find that the county has submitted subsequent tax payments of $333,000 to the IRS. However, the IRS has also issued refunds to the county of approximately $88,000.
In their report, Goad and Company states, "...the net $245,000 is comprised of $61,000 additional liability and $184,000 in late payment or late filing interest or penalties. These amounts are subject to change when the IRS completes the 2004 period reconciling."
Goad and Company said that when the IRS reconciles information from 2004, they will present a final report of their findings. However, right now, no official time table for when that final report will be presented has been set.
Region 8 News will continue to track this story and bring you the latest details as soon as they become available.
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