Augusta Arkansas: Audit reports unaccounted funds and improper transactions

Augusta, Ark. (KATV) — The city of Augusta is under review after an audit found several used funds lacking documentation and explanation.

The audit, performed by the Arkansas Legislative Audit, analyzed the city's financials from January 1, 2020, to December 31, 2022.

A letter sent to the prosecuting attorney and the attorney general said there were improper transactions and other issues related to the use of funds which included but were not limited to:

• Improper adjustments made to utility customer accounts without a policy totaling $167,978.
• Failure to follow bidding requirements for purchases totaling $335,026.
• Lack of documentation for credit card purchases totaling $15,203 and checks to City officials totaling $10,376
• Excessive salary payments to the Mayor and Assistant to the Mayor/City Clerk - $6,672 and $4,239 respectively.
• Failure to select an accounting firm for financial audits.
• Unauthorized payment to an employee's spouse for cleaning services - $5,585 (2021) and $528 (2022).

During a council meeting on Tuesday night, the city's mayor Jeff Collins shared some explanations for the report's findings.

Collins claimed that 75% of the purchases requiring competitive bids were for tornado damage which "the council was involved in".

Collins also addressed concerns about him increasing his salary.

"The council at that time had said they were voting for a 3% raise for me," Collins said. "So for three years, I got a three percent raise."

The audit details, including the response from the city, can be read in the documents below: