AP audit reveals lack of financial compliance by rehab services company

An accounts payable audit and investigation into Arkansas Rehabilitation Services (ARS) found several discrepancies, including a lack of financial documentation, accounts mismanagement and hiring processes.

According to KATV-TV, ARS, which is based in Little Rock, operates under the state's Department of Career Education. After undergoing a routine audit, there were several instances of insufficient record keeping, lack of following policies and procedures and various other discrepancies that were found within the organization.

The director of the Arkansas Department of Career Education, Bill Walker, is currently under fire after the audit report was released, according to the Arkansas Times. Walker, who is a former state Representative and Senator, is being questioned about the operations of ARS. The audit's findings revealed that there was a severe lack of accounts payable and receivable management. ARS failed to correctly follow purchasing procedures by not taking bids for several purchases and expenses as well as not itemizing some costs.

Additionally, the organization also overpaid an employee $20,431 who was supposed to be on leave without pay, the source reports. There were also errors made for travel expenses, as ARS overspent on 12 trips and failed to follow regulations established for these types of costs.

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