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Audit questions claimed savings from Arkansas’ government transformation; agencies cite reallocations and data limits
Summary
A Legislative Audit review of Act 565 (2019) found many claimed savings from Arkansas’ government transformation could not be verified with department documentation, flagged $43.3 million in bonded debt tied to two purchased buildings and $6.4 million in relocation/renovation costs omitted from DTSS reporting; agency leaders said some savings reflect reallocations and that DTSS will improve data collection.
A legislative audit presentation to the Senate State Agencies & Governmental Affairs committee on Wednesday concluded that many of the savings the Department of Transformation and Shared Services (DTSS) reported under Act 565 of 2019 cannot be verified in department records.
"A reduction in appropriation or funding is not equivalent to a reduction in actual expenditures," Andy Babbitt of Legislative Audit told the panel as he summarized the agency's review of the Act 565 report and a November 19, 2020 DTSS presentation. The audit verified some lease reductions but said leased square footage overall rose while annual lease costs fell, and it identified new or previously unreported expenses.
The audit listed several notable findings: auditors said the state now carries about $43.3 million of bonded debt issued to purchase and renovate two buildings (the Timex Building and Verizon Building Number 4), with bond payments expected to exceed $2 million a year over the next decade;…
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