Johnson County JPs Seek Clarity On Financials

By Editor | July 14, 2026 |

LOCAL GOVERNMENT COVERAGE – JOHNSON COUNTY QUORUM COURT

by Janice Penix

A discussion surrounding county finances on Thursday resulted in the Johnson County Quorum Court requesting outside assistance to clarify actual fund balances.

During the monthly review of the county’s finances, County Judge Herman Houston provided the Court with a report on American Rescue Plan Act (ARPA) funds to-date. Houston said his office has tracked the funds from the time the county received them in 2021 and 2022, accounting for the balances spent on each specific project funded through the federal COVID relief dollars.

According to the county judge’s report, the county has spent $4,442,727.12 in ARPA funds, with $394,027.74 remaining, following the completion of two major projects this year: the district court expansion and construction of two emergency communication towers.

But a report from County Treasurer Melanie Cowell seemed to offer different information. Her report detailed the total ARPA funds spent by the county each year, from 2022 through the present. According to that report, total expenses are $4,119,856.89, leaving a balance of $1,042,608.11.

Cowell said her office’s report also included the $430,000 in interest received from the account where the funds are held, bringing the total balance to $1,473,210.32. However, in the monthly financial report, the ARPA fund balance was listed at $1,144,842.06, a difference of $328,368.26.

Cowell told the Court she was in the process of matching fund totals with appropriation ordinances the Court had passed, to help her determine any items not included in her report, but she was unsure about any other discrepancies.

“They don’t quite match,” Houston said of his office’s report, compared to Cowell’s, “but I’m telling you, we can tell you to the penny every dollar that’s been spent in ARPA, what it’s for, and that it’s been appropriated.”

The Court approved the treasurer’s report, but later in the meeting, Justice of the Peace Katie Howard raised concerns again about the accuracy of the financial information the Court receives, as well as timeliness in obtaining follow-up information.

“I understand things are busy, but I feel like we’re going on month three or four where we’re asking questions about the financials and we’re getting, ‘I don’t know,’ or ‘I’ll check in later,’” Howard said. “I feel like we’re supposed to be able to know what our financials are at the meeting. I’m concerned, and it’s proven with the ARPA, that we’re not getting accurate information, and that prevents us from being able to do our job the best that we can.”

Howard suggested employing an auditor to assist in clarifying the county’s financial reports.

“I would even entertain looking into getting an external audit done, so that we can know what our actual numbers are, so that we can make the best decisions that we can,” she said. “Because I feel like we’re kind of going at this blind right now…I’m just trying to figure out how we can get the best, most accurate information and know that it is correct.”

Other Court members agreed.

“I think it’s a good idea,” Justice of the Peace Kris Muldoon said. “We’re getting ready to do budget planning for next year and if we don’t know exactly where our numbers are now, it’s going to be hard to plan for next year.”

Justice of the Peace Mike Estes clarified the Court did not feel the discrepancies are due to inappropriate conduct on the part of any county official.

“I don’t think anybody thinks there’s any misappropriation or illegal stuff going on, it’s just the fact that we do not know a concrete, bottom line of what these numbers are,” he said. “We’re not accusing anybody of anything.”

Howard said she understood audits can be costly, and she did not want the county to spend an excessive amount. She made a motion to authorize Houston to research the feasibility and cost of an audit of the county’s finances, and to report back at the August meeting. The motion passed unanimously.

Other Matters

–The Court appropriated $67,481.17 in grant funds for the construction of an ADA-accessible fishing pier at Horsehead Lake. The funds were received through the Arkansas Game and Fish Commission’s marine fuel tax grant program. Joyce Carson, administrative assistant in the county judge’s office, told the Court the county will partner with the U.S. Forest Service as it undertakes the project. Houston said the county will contribute both in-kind labor and $5,000 in funding toward the improvements.

–An ordinance was approved appropriating $11,000 in court security grant funds for the installation of electronic keypad locks in the courtroom.

–Justices of the peace appropriated $55,000 in county general funds for the purchase of two used vehicles for the sheriff’s office. Sheriff Grant Nicely said the vehicles will replace two wrecked units in the department’s fleet and insurance money from those vehicles was also applied toward the purchases.

–The transfer of a warrants clerk position from the sheriff’s office to 911 was approved, including the funds for the clerk’s salary and benefits. The clerk enters warrants, protection orders and validations for stolen property, and in order to perform the duties, Nicely said the employee must be certified through the Arkansas Crime Information Center, which is a dispatch function. He said it was logical, then, for the employee to serve under 911 instead of the sheriff’s office. Both departments are under the purview of the sheriff, and the ordinance approved by the Court transferred the salary funds from one department to the other. JP Bryan Cooper abstained from the vote.

–A resolution was approved authorizing the county’s participation in a federal aid program through the Arkansas Department of Transportation for the replacement of the Little Mulberry Creek Bridge over County Road 5099. Federal aid will fund 90% of the project, with the county responsible for 10%.

–Members approved the appointment of Shonda Walters to the Johnson Regional Medical Center Board of Directors, to replace Ethan Rogers; and the appointment of Eddie Lindsey to the county equalization board.

–JPs were reminded the August meeting will be held on Thursday, Aug. 6, due to the Association of Arkansas Counties conference falling during the regular meeting date.

Members present included Paula Ober, Van Hill, Bethany Bean, John Payne, Larry Jones, Pete Petersen, Bryan Cooper, Estes, Muldoon and Howard. Justice of the Peace Ray Hobbs was absent.