The Alexander City Council received the annual Legislative Audit report for the calendar year 2023. The audit is conducted annually by the State. The audit for 2023 was performed in 2024.
As stated in the report, the purpose of the annual audit, “(I)s to assist local government officials by promoting sound financial management and accountability of government resources. The Legislative Auditor reports on the fiscal affairs of local governments, as well as compliance with relevant state laws and observance of good business practices to provide accountability for tax dollars expended to support government operations.”
The audit does not involve a financial reconciliation of the budget.
City officials listed in the report for 2023 is Mayor Crystal Herrmann, Recorder Sharon Bankhead, Treasurer JoAn Churchill, District Court Clerk Janet Guess, and Police Chief Robert Burnett. This was Herrmann’s first year as mayor.
The report states, “During our evaluation, noncompliance with state law and accepted accounting practices was noted in the offices of the Treasurer and District Court Clerk.”
Under District Court Clerk the report noted what seems to be an on-going issue. It states, “Balances remaining in the bank were not identified with receipts issued for cases not yet adjudicated and payments made on all unpaid individual time accounts, as required by Ark. Code Ann. § 16-10-209. A similar finding was noted in the previous three reports.”
It was the section concerning the Treasurer that had the most noncompliance findings. The list included:
Prenumbered receipts were not issued for all funds received.
Cash receipts journals were not properly posted and reconciled with bank deposits.
Monthly bank reconciliations were prepared but were not accurate.
A detailed fixed asset listing was not maintained to include additions, deletions, and a control total.
The audit also stated, “A similar finding was noted in the previous report.”
But, it was the issue of a credit card that garnered the most attention of council members.
In the 2023 Legislative Audit Report it states, “The City did not have adequate internal controls relating to the use of credit cards and other expenditures. Our examination of disbursements revealed the following:
A Council member, who is not an employee of the City, obtained a city credit card in their name. According to the Council member, this card was given to the Police Chief for purchases. From May 2023, when the card was activated, to November 2023, when the card was closed, the City paid $8,018 for purchases made using the card. Of $5,521 in payments we examined, $5,057 did not have proper documentation to support a business purpose.
Other disbursements examined, totaling $4,014, did not have adequate supporting documentation; therefore, the validity of these transactions could not be determined.”
The council member referenced in the report is Juanita Wilson. This was not news to those council members present in 2023, after it was discovered and dealt with during the September council meeting. At the time the two cards were relinquished and both Wilson’s and Treasurer JoAn Churchill’s names were removed from the accounts.
During the November 2025 council meeting Wilson said the credit card wasn’t for herself. It was for then-Police Chief Robert Burnett.
“It was actually a mistake that the bank made and it was given to Miss JoAn (Churchill) and she gave it to the police chief,” Wilson said. “So they can do their daily (Purchases)”.
According to Wilson, Burnett was telling her the Mayor wasn’t allowing him access to the city credit card for necessary purchases. Herrmann denied the allegation.
Wilson has always denied she ever used the card for herself.
As is their practice, the Arkansas Division of Legislative Audit has sent the audit report to the Arkansas Attorney General for review to determine if any prosecutions are warranted.
During the discussion of the report, Office Manager Jennifer Hill explained the Mayor had to provide the auditors a written plan to resolve each of the issues found during the audit. Hill said as the various problems were uncovered a plan would be developed in real time to be provided when the audit was completed.
Not wanting to wait for an investigation, during the Public Comment portion of the meeting two residents spoke wanting action now. Whether it be Wilson’s resignation or removal by the council.
Council Member Joy Gray explained that the council does not have the legal authority to remove a council member. Only a judge can do that.
“A judge has to find a person on the council guilty of malfeasance and then remove them,” Gray said. “So, just in case anybody's wondering, why don't you do anything, legally we got nothing up here.”
Gray said if a council member moves “out of the city” the council can act. She also explained because a council member’s term is two years, recall elections aren’t an option under state law.
Other news from the November 17 council meeting
Council saves approval of proposed 2026 budget for December
Below is a summary of the 2025 Budget and the proposed 2026 Budget. Actual totals for 2025 should be available by February, 2026.
General Fund Budget
2026
Parks Department Budget
2026
Street Department Budget
2026
Police Department Budget
2026
Fire Department Budget
2026
Payroll Fund Budget
2026
Next Meeting
