By Rob Moritz
Arkansas News Bureau
LITTLE ROCK — An East Arkansas prosecutor said today his office is investigating financial irregularities discovered in a recent state audit of the city of Helena-West Helena.
The investigation is in addition to an ongoing probe of improprieties uncovered in an audit report of the city’s finances presented to legislators last year, 1st District Prosecutor Fletcher Long of Forrest City said.
“I am aware of both and am having conversations with people about both,” Long said, declining to comment specifically about either case.
The most recent findings, in which state auditors questioned payments of nearly $60,000 to Mayor James Valley and other city officials and employees in 2007, were presented today to the Legislative Joint Auditing Committee’s Standing Committee on Counties and Municipalities.
The panel deferred its review until November after members of the Helena-West Helena City Council told lawmakers state auditors were scheduled to present their findings to council Oct. 20.
“As a council we need to know all of the facts,” Alderman Larry Wilson said in an interview after today’s legislative meeting.
Wilson said the city council has asked Long to inform members within two weeks whether criminal charges will be filed as a result of the audits.
“We’ve asked (Long) to give us a plan within the next 15 days, a plan of action that he is going to take,” Wilson said.
Long said today he was unaware of such a request.
Wilson also said the City Council has asked Valley and city officials and employees named in the audit to respond to the findings in writing.
The mayor did not attend today’s meeting and did not immediately return a telephone call seeking comment.
The most recent audit report said improper payments made were mostly for travel expenses that were not documented. Auditors also found the city paid more than $79,000 to city employees in addition to their regular salaries, including $51,000 to City Attorney Andre Valley, the mayor’s brother. The audit suggested the payment to Valley’s brother was in conflict with the state ethics guidelines.
On his Internet blog, entitled “Mayor Valley’s Journal,” Valley blamed many of the audit’s findings on a lack of receipts.
To correct the problem, Valley wrote in his blog that he will require additional training for employees in the proper handling of reimbursements.
“Additionally, I will aggressively seek repayment of monies to the city for those expenses that cannot be justified with proper documentation,” he wrote.
He denied audit findings that the city paid expenses associated with a late alderman’s funeral.
As for the payments to his brother, Valley wrote that his brother earned the money for legal services, and he also denied the payments violated ethics laws.
Last year’s audit, which covered 2006, found numerous problems, including improper documentation of travel expenses totaling $400; the use of $3,206 in city funds for public radio spots promoting a proposed sales tax; $805 for alcoholic beverage purchases for two receptions; and an undocumented $5,642 reimbursement paid to the mayor that covered some expenses twice.
Also today, the Standing Committee on State Agencies learned of an audit of the Arkansas Teacher Retirement System that found several apparent violations, including that the system paid for services before entering into contracts.
The audit also found untimely deposit of checks, extension of mortgages without proper approval and improper computer security.
ATRS Executive Director George Hopkins told the panel he is taking steps to correct the various problems and noted that they occurred under former system director Paul Doane, who resigned last year amid complaints about his travel expenses.
During the meeting, the panel asked that the ATRS attorney and officials with Ennis Knupp, the system’s fund manager, appear at the November meeting to discuss some of the audit findings.
The Associated Press contributed to this report.
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On the Net:
jfvalley.blogspot.com
