A Franklin County circuit judge recently approved a motion for a special prosecutor to expand authority and investigate findings of an Arkansas Legislative Audit for the city of Ozark that shows apparent state constitutional conflicts.

Circuit Judge William Pearson approved a motion last week made by former Fifth Judicial District Prosecutor David Gibbons that will allow David Etheridge of the 14th Judicial District to have broader authority to investigate and prosecute, if necessary, in his role as special prosecutor for the findings of an audit that found “certain deficiency in internal control" that are considered to be a "material weakness.”

Noncompliance with state law and accepted accounting principles was noted in the offices of mayor, recorder/treasurer, and District Court clerk, the audit states.

The office of the Ozark police chief, however, was in “substantial compliance” with Arkansas fiscal and financial laws, the audit adds.

Review of credit card charges, the legislative audit on the city of Ozark states, “indicated the City had one account with five cards issued to the Mayor, Recorder/Treasurer, Street Superintendent, Police Chief and Fire Chief, respectively.”

Those holding offices in Ozark in 2017 included Mayor T.R. McNutt, Recorder/Treasurer Sonya Eveld, District Court Clerk Sherry Lowrey and Police Chief Devin Bramlett.

The audit lists the following charges to the credit cards under one account: “$1,520 in undocumented fuel purchases ($1,343 by the Fire Chief and $177 by the Street Superintendent); $1,049 in charges not adequately documented ($752 by the Street Superintendent, $248 by the Fire Chief, and $49 by the Recorder/Treasurer); $925 conference registration fee for personnel of a nonprofit organization (Keep Ozark Beautiful) in apparent conflict with Ark. Const.); $300 in conference registration fees for the family members of the Mayor and a City Council official; $224 in clothing purchases made by the Street Superintendent without an apparent business purpose; $88 in personal purchases by the Recorder/Treasurer, who submitted a personal check issued to the credit card company for these charges.”

Federal payroll taxes for the first quarter of 2017 were paid late, the audit noted under a section for the “Recorder/Treasurer.” This resulted in penalties and interest of $2,797 assessed by the IRS, which the city paid in June 2017. The city of Ozark filed an appeal on Oct. 31, 2018.

The audit’s focus on the District Court clerk shows receipts were “not deposited intact and daily,” “not reconciled with monthly deposits” and “monthly settlements were not made timely (i.e. on or before the tenth day of the following month.)”

“In addition, receipts were $2,375 more than bank deposits as of December 31, 2017; however, as of May 20, 2018, all receipts had been deposited,” the audit states.

Under a section tilted “Mayor,” the audit notes the city made payments totaling $49,635 “in apparent conflict” with the Arkansas Constitution. The payments included $30,000 to Main Street Arkansas, $12,000 to the Area Agency on Aging, $2,953 to the Chamber of Commerce, $2,500 to the Ozark-Franklin County Airport, $1,300 to the Senior Citizens Center, $682 in travel reimbursements to Keep Ozark Beautiful personnel, and $500 to the Fort Smith Regional Alliance.

The audit also noted that there were five “Information System weaknesses” such as “no documented remote access security policy” and “no wireless security and use policy.” There was also no “formally documented and approved Business Continuity Plan” that would aid in curbing a “disruption in technology and automated information systems.”

In October 2018, Gibbons requested a special prosecutor to look into allegations made by Steve Whitaker of Ozark because the Fifth District Deputy Prosecutor Jeff Phillips also serves as the Ozark city attorney.

Whitaker questioned certain use of public funds for private use by both City Clerk Sonya Eveld and her husband, Kevin Eveld, the former Ozark fire chief who resigned unexpectedly in May following Whitaker’s investigation into city spending and the fire chief also serving as construction manager for the new fire station.

Joey McCutchen of McCutchen & Sexton in Fort Smith, has represented Whitaker in an Arkansas Freedom of Information Act (FOIA) complaint against the city of Ozark filed in July.

“It’s important for all citizens to have access to what goes on in municipal government,” McCutchen said Tuesday. “Without that access, we all have backroom deals and secret arrangements with no accountability. FOIA is the only tool that ensures accountability in local government.”