Chicot County water boards skipped required audits as $206,616 went to their bookkeeper
An Arkansas Legislative Audit investigative report found that from October 2020 through December 2025 the Chicot County Drainage District and the Chicot Junction Water System paid $206,616 to their shared bookkeeper or her business above authorized amounts and without documentation ($34,650 and $171,966). Another $10,405 in water customer payments never reached the bank. Neither board obtained the annual audits or CPA reviews state law requires, checks needed only one signature, and auditors said the governing bodies did not exercise proper oversight. The water system also paid a board member's company $167,698 without a contract or board vote and later hired his wife as office manager. Bookkeeper Debra Chandler was charged with two felony theft counts in June 2026 and pleaded not guilty. Board presidents said they trusted the bookkeeper too much. The report went to the prosecutor and Attorney General.
The whole problem here is we just put too much trust in our bookkeeper.
ASP say that their investigation revealed that Chandler stole $215,821 from two different entities.
Several internal control deficiencies contributed to both the misappropriation of funds and the lack of timely detection of the misappropriation.
The investigation revealed Chandler stole $215,821 from the two entities.
Says it hired a CPA firm, now requires two board signatures on checks and reviews bank records at each meeting.
Board president David McNemar: "The whole problem here is we just put too much trust in our bookkeeper."
Pleaded not guilty; her attorney said "We are working on a resolution of it."
No outcome recorded yet.