Little Rock — January 2026
Legislative auditors walked lawmakers through a series of uncomfortable findings at the Arkansas Department of Human Services this week, starting with disaster food assistance — and ending with the state paying sales tax to itself.
According to Legislative Audit, 13 DHS employees provided false or incomplete information to receive nearly $8,000 in Disaster SNAP benefits following the March 31, 2023 tornadoes in Pulaski County.
All 13 were fired.
Auditors also flagged a separate case involving one DHS employee who improperly collected about $5,800 in Medicaid benefits.
That employee was terminated.
The case has been referred to prosecutors and the Attorney General.
As of the audit, none of the money had been recovered.
In July 2024, DHS issued a nearly $610,000 state warrant to the University of Arkansas at Little Rock.
Somewhere between the state and the bank:
The Treasurer’s Office notified DHS on July 31.
Legislative Audit found out on August 21 — about 15 business days later.
The FBI was eventually notified.
The forgery claim was honored.
The money was returned to the state in November.
Auditors also found DHS paid more than $17,000 in state sales tax on vehicle purchases that were supposed to be tax-exempt.
DHS said the tax was paid after being required at the point of sale and that the agency is now working with the Department of Finance and Administration to get the money back.
The committee deferred final action on the audit and asked DHS to return with proof that the fixes discussed during the hearing are now written into policy.
