Audit: Misappropriation of funds found in Craighead Co. Clerk’s office

Published: Jun. 24, 2021 at 6:19 PM CDT|Updated: Jun. 24, 2021 at 11:02 PM CDT
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LITTLE ROCK, Ark. (KAIT) - A lack of segregation of duties in the Craighead County Clerk’s office led to nearly $1.6 million being transferred to the personal account of now-former Craighead County Clerk Kade Holliday, legislative officials said in a pre-audit report.

The report was sent to Second Judicial District Prosecuting Attorney Keith Chrestman on June 11.

The report alleged that Holliday, who resigned in 2020 after the discovery of money missing in the clerk’s office, had complete control over the financial issue.

“After a Deputy County Clerk’s employment was terminated in October 2019, the County Clerk obtained exclusive authority over the Payroll Clearing Account, creating a lack of segregation of duties over the Account. Subsequently, the County Clerk had sole responsibility for making payments from the Account to various vendors for payroll deductions. This control deficiency was due to management’s failure to maintain established controls,” the letter noted.

The unauthorized transfers were done from Jan. 23 until June 24, 2020, the letter noted.

“Also, during the period, funds totaling $168,257 were transferred from the personal account back to the Account, leaving a net shortage of $1,410,800,” the letter noted.

The Legislative Joint Auditing Committee is expected to discuss the issue at its Aug. 13 meeting in Little Rock.

Also, Craighead County justices are expected to discuss the issue at its June 28 meeting in Jonesboro.

Justices are also expected to discuss an ordinance to create a fund, called the “Jacob Kade Holliday Restitution Fund.”

The fund will be used to track the revenues that are received as part of “Jacob Kade Holliday’s repayment of embezzled funds from Craighead County.”

Holliday faces a Sept. 13-24 court date on the state theft charges and an Oct. 18 trial date on a federal wire fraud case, both court records and the audit report noted.

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