By Rob Moritz
Arkansas News Bureau
LITTLE ROCK — One former municipal employee faces theft charges and three local government workers lost their jobs after state auditors discovered more than $100,000 in public funds missing in separate audits of Harrison and Lonoke County finances, legislators heard today.
Sarah Reese, a clerk in the Harrison Water Department’s billing office, was arrested in late November and charged with two counts of theft of property after state auditors discovered $61,150 missing from the city’s water meter deposit fund, auditors told the Legislative Joint Auditing Committee.
Two other city employees were fired.
Reese, whose primary responsibility was to receive payments for water bills and meter deposits, was released from jail after posting a $10,000 bond.
Harrison Mayor Pat Moles requested an audit of the city’s water meter deposit fund after a city resident paid two $100 meter deposits in July and was denied a refund.
Moles said in a letter to the committee that since the audit policies and practices have been put in place “to minimize the chances of this happening in the future.”
In Lonoke County, a bookkeeper in the sheriff’s office was fired after $67,000 in bond and fine revenues turned up missing during a recent state audit, lawmakers heard today.
No charges have been filed against Cassandra Pitts, the former employee who was responsible for receiving, recording and depositing bond and fine revenue, but the county prosecutor and state police are investigating, auditors said.
State auditor David Webb said the audit discovered $67,000 in bond and find payments was paid but never deposited into the sheriff’s office bank account between Jan. 1, 2008, and last Aug. 19.
“A lack of internal and software controls relating to the receipting and depositing process allow the same bond and find receipt number to be issued multiple times to different defendants with only the last receipt issue reflected in the receipts journal and bank account deposit,” Webb said, adding that new procedures should be implemented “to ensure all bond and fine receipts are not duplicated and are recorded and deposited in the bank account.”
Sheriff Jim Robertson said in a letter to the audit committee that problems cited in the findings were being corrected.
