first_imgKENSETT — The state auditor says 22 different red flags have been raised as part of an investigation into proper procedures by the City of Kensett. State Auditor Rob Sand says the findings address issues such as: a lack of segregation of duties; the lack of bank reconciliations; the lack of independent reviews of utility reconciliations; disbursements exceeding budgeted amounts; business transactions that may represent conflicts of interest; a city clerk’s report not prepared and presented to the city council; and city council meeting minutes not being published in compliance with state code. Sand says Kensett’s city council has a fiduciary responsibility to provide oversight of the city’s operations and financial transactions, adding that oversight is typically defined as the “watchful and responsible care” a governing body exercises in its fiduciary capacity. The report says at the end of June 2019, the city had deficit balances of $16,310 in its special revenue fund, $53, 233 in its road use tax fund, and $17,112 in its enterprise, water and sewer funds. You can look at the full state auditor’s office report on the City of Kensett by clicking herelast_img