LITTLE ROCK — A Joint Legislative Audit Committee meeting on Friday resulted in sharp condemnation toward the city of Pine Bluff after findings of extensive fraud and misappropriation from a financial audit were presented, prompting a committee chair to call the activity “plain old theft.”
The remark from House committee chair Rep. Robin Lundstrum, R-Elm Springs, came after a presentation detailing almost $300,000 in unaccounted funds and unallowable purchases within the Parks and Recreation department, a matter Arkansas State Police are already investigating. The committee ultimately voted to file the report.
“Mayor, what I appreciate most is you didn’t try to cover it up or hide it,” Lundstrum stated to Pine Bluff Mayor Vivian Flowers after her sworn testimony. “You dealt with it straight on and called it for what it is. It’s plain old theft if people in trusted positions stole from the city of Pine Bluff.”
The 2024 financial audit, which was released Friday morning and presented by legislative audit staff, gave the city an unmodified opinion on its main funds, but a separate management letter disclosed severe findings related to the offices of the mayor, the parks director, and the finance director.
Independent reporting for Pine Bluff & Jefferson County since 1879.
According to the letter, officials who held office during 2024 included Mayor Shirley Washington, City Clerk Janice Roberts, Treasurer Greg Gustek, Parks and Recreation Director Trudy Redus, Finance Director Gina Devers, Police Chief Denise Richardson and Urban Renewal Director Chandra Griffin.
The most severe findings were in the Parks and Recreation Department, which has been referred to the prosecuting attorney, state attorney general, and the Governmental Bond Board.
Among the findings listed under “Mayor and Parks and Recreation Director”:
— Unaccounted funds: A review of transactions from Jan. 1, 2023, through May 21, 2025, identified $179,629 in manual receipts from the Parks department that could not be traced to the city collector’s receipts and deposits. Missing receipts were noted at the main office, the Jaycee Golf Course, and RV parks. No receipts were issued for revenues received from Harbor Oaks Golf Course; therefore, the actual amount of unaccounted-for funds could be higher.
— Unallowable purchases: Auditors found $48,415 in unallowable purchases — including holiday décor, kitchen items, personal hygiene items, fashion accessories, gift cards, and electronic devices. These items were often shipped to addresses not related to the city of Pine Bluff. Furthermore, numerous invoices submitted to the clerk’s office were altered to conceal the items purchased and the shipping address.
— Equipment: Three lawnmowers were not available for audit inspection, making it impossible to determine if the equipment remained in the city’s possession.
— Personnel action: The Parks office manager and assistant director employed during the time of the transactions were terminated in May of last year.
In the Finance Department, findings cited noncompliance with Arkansas code and proper accounting procedures, noting that cash receipts journals were not properly maintained or reconciled; and monthly bank reconciliations were not performed promptly or prepared properly.
Flowers, Devers, and current Parks and Recreation Director Prutty Holman appeared before the committee to detail the extensive reforms implemented to prevent future corruption.
Flowers, who took office Jan. 1, 2025, emphasized that the reported activities occurred before her term and that accountability has been her priority.
“The main thing that I want to share … is that what you all are hearing today, it won’t happen again, and that we have taken action to make the appropriate changes,” she said.
Flowers detailed several immediate and long-term actions:
— Forensic audit: The city secured the services of an accounting firm to conduct a comprehensive forensic audit covering all departments under the mayor’s office for 2023 and 2024, with an expanded scope for Parks and Recreation.
— Standard operating procedures (SOPs): A professional consultant has been hired to establish a framework for centralized, documented SOPs across all city departments, which previously did not exist in many areas.
— New personnel and technology: A procurement director position was approved and the city is undergoing a multi-year transition to the Tyler Technologies financial software system.
Holman informed the committee that she discovered the irregularities soon after her appointment in early 2025 and took immediate action. She highlighted the elimination of manual receipts.
“We are using or utilizing our New World system, eliminating any manual receipts,” said Holman. “Once we enter that information into the system, then it’s there. I can’t do anything to change it.”
Holman also stated that SOPs are now in place and posted for staff, and the department has eliminated cash transactions at the RV park by establishing QR codes for payment.
Devers addressed the findings in her department by stating that citywide SOPs are being implemented across all departments that receive funding. She also confirmed the implementation of a new timely deposit rule.
“As for the receiving and depositing timely, we are. I have implemented a three-day rule and if I receive a check on Monday, I have until Thursday to get it deposited,” she stated.
When asked by the committee chair for the status of the investigation and potential prosecution, Flowers clarified that the matter remains with law enforcement.
“Well, I won’t say prosecution is being pursued. We have met with the prosecutor’s office as well as State Police and our own police department, and I believe that the status is still under investigation by the State Police,” she confirmed.
The Pine Bluff Commercial reported in June 2025 that State Police had launched a full-scale investigation into the Parks and Recreation department following reports of potential irregular activity within the city agency. Local authorities requested the investigation after an earlier discovery that more than $250,000 was missing.
City officials turned over all related information and evidence to local law enforcement. Following this initial action, Jefferson County Prosecuting Attorney Kyle Hunter formally asked state investigators to take over the case, State Police accepted.
Flowers confirmed the investigation to The Commercial, stating that the city is fully cooperating with the inquiry.
“The city of Pine Bluff takes the stewardship of public resources seriously. We remain committed to transparency, accountability, and restoring public trust as this matter proceeds through the appropriate legal channels,” she added, echoing some of her campaign promises.
As part of the city’s internal response to the incident, two employees were terminated in May 2025.
Video of the meeting is at this link.
An earlier version of this article indicated an incorrect amount of unaccounted funds.