City of Fort Smith ’disbursement’ errors noted in draft audit report – Image for illustrative purposes only (Image credits: Pixabay)
Fort Smith, Ark. – A draft state audit report has ignited fresh controversy over spending from the mayor’s office, prompting an attorney to demand criminal investigations while city leaders dismiss the findings as mere paperwork issues. The report highlighted nearly $170,000 in disbursements lacking proper documentation, fueling debates about compliance with Arkansas law. Local attorney Joey McCutchen raised the stakes during a news conference on May 4, urging probes into potential wrongdoing.
Audit Uncovers Documentation Shortfalls
The Arkansas Legislative Audit examined transactions from the mayor’s office spanning January 1, 2024, to October 7, 2025. Auditors identified $170,007 in expenditures that failed to include contracts for services or evidence of a public purpose, violating provisions of the Arkansas Constitution. These funds went to a range of local nonprofits supporting community initiatives.
Organizations that received support included the Arkansas Colleges of Health Education, Fort Smith Boys and Girls Club, Fort Smith Symphony, Steel Horse Rally, Hamilton Center for Child Advocacy, Girls Inc. of Fort Smith, Fort Smith Roundtable/Juneteenth, Mercy Health Foundation, and the Fort Smith Museum of History. The audit offered a single, straightforward recommendation: the city must ensure all disbursements align with Article 12, Section 5 of the state constitution and demonstrate a clear governmental function and public purpose.
Attorney Pushes for Deeper Scrutiny
McCutchen, who has long criticized city spending under Mayor George McGill, called the lapses serious enough to warrant criminal charges. He argued that taxpayer dollars demand strict adherence to the law and questioned how city officials and their legal counsel overlooked the requirements. McCutchen also leads efforts to reform the city’s government structure.
Plans outlined by McCutchen include requesting the audit agency to broaden its review across McGill’s entire tenure and pressing the Fort Smith Board of Directors to launch its own investigation. He suggested nonprofits return the funds and noted that the Arkansas Attorney General’s Public Integrity Unit is looking into the matter. Communications director Jeff LeMaster responded that the office could neither confirm nor deny any active investigations involving Fort Smith.
What matters now: While the audit stops short of alleging crime, McCutchen’s escalation highlights ongoing tensions over how public money supports private groups – and whether documentation alone can resolve the dispute.
City Leaders Counter with Compliance Steps
Mayor McGill issued a statement rejecting claims of misconduct, describing the audit’s notations as administrative errors rather than evidence of misappropriation. He emphasized that all funds served community needs through established nonprofits aiding youth, health, education, and families. The mayor’s office pledged to enhance internal controls and documentation to meet constitutional standards.
Recent allegations made in connection with a legislative audit are both misleading and inaccurate. The audit in question did not find any misappropriation, misuse, or unlawful diversion of public funds by me or by the City administration. The findings identified administrative errors and documentation omissions, but do not constitute criminal conduct.
The city echoed this position, acknowledging the documentation gaps but insisting no theft or personal gain occurred. Officials noted they had already adjusted policies, including cutting a special events budget line and reviewing purchasing procedures. Future payments to private entities would require board-approved public services agreements where needed.
Looking Ahead to Oversight and History
The draft report awaits review by the Arkansas Legislature’s Joint Audit Committee, chaired in the Senate by Jim Petty of Van Buren. The panel’s next session occurs on June 4, though the Fort Smith audit does not yet appear on its agenda. This development follows a February 2025 settlement in Sebastian County Circuit Court, where the city agreed nonprofit funding was lawful if procedures were followed.
That earlier case, brought by plaintiff Jimmie Cavin and represented by McCutchen, underscored similar concerns but ended without admitting fault. City actions since then reflect an effort to tighten oversight amid persistent challenges from critics. As the audit process unfolds, Fort Smith residents watch closely for signs of greater accountability in how their dollars flow to local causes.
