QUESTIONS ABOUT AN ABC VEHICLE

In December 2009 the ABC purchased a new 2010 Dodge Charger for $16,378.00 (Capital Outlay).  In July 2010 state vehicle use was raised in articles in the Arkansas Democrat-Gazette regarding the number of state vehicles, the cost of acquiring and operating them, and how many were used for commuting. At that time, about 2,000, including law enforcement employees, were commuter vehicles. 

CLICK TO VIEW PURCHASE DOCUMENT

In addition to the news coverage, there were several law suits filed. One, by Little Rock attorney Eugene Sayre, that wanted state vehicles may be used only for official business and seeks to force employees to pay money back to the state for nonofficial use of the vehicles.

The second, by the state Republican Party, that wanted that personal use of state vehicles by state elected officials violates the salary-limiting provision of Amendment 70 of the state constitution.

As a result of all the hoopla Gov. Mike Beebe issued an Executive Order on October 5, 2010 that stating that commuting between home and work in a state-owned vehicle will no longer be allowed except when "a legitimate state business purpose is established."

CLICK TO VIEW THE EXECUTIVE ORDER

All of this caused the vehicle to be transferred from exclusive use at the ABC to the DFA vehicle pool.

Then in 2013, the ABC "bought" the vehicle back for $16, 161.69. This makes no sense.

DFA/ABC 2013-2014 BUDGET REPORT

To calculate depreciation expense on a fixed asset without a salvage value the cost is divided by the life.

SL – Cost / Life

The annual depreciation is calculated as follows:

16378 / 6 = 2730

Each year for 6 years $2,730.00 would be expensed.  At the end of 6 years the book value of the asset would be zero (the cost of $16,378.00 less 6 years depreciation expense at $2,730.00 per year).

So when the vehicle was transferred or "re-purchased" from the DFA vehicle pool back to ABC the Capital Outley or value of the vehicle, based on the straight line method of depreciation, would be approximately $7,966.00 not $16,161.69. Let's hope it was an accounting error that has gone unnoticed.

Before you shake your head and go do something else, let's look back at the email from Joel DiPippa. Joel says that the vehicle (it is incorrectly listed as a Dodge Avenger) is assigned to Rick Crisman . Yep, that's the same Rick that uses his position for personal gain and benefit.

If you look up the vehicle on the DFA web site you will find this:

VEHICLE INFORMATION

Notice that is states that the vehicle is "Unassigned" and not a "drive home" vehicle.  But Joel says it is assigned to Rick.  Furthermore Joel points out Rick has the vehicle pursuant to Executive Order 10-14 (5) (b).

Well, isn't that special. What would have to happen for the Deputy Director of ABC ,who's actual job title /function is education and instruction analyst, to have to get up in the middle of the night, jump in his state vehicle and rush off to deal with a public health, safety or welfare emergency? Perhaps an emergency training session?

Sounds like hogwash to me.  Google Arkansas Alcoholic Beverage Control Administration emergency and look all at the news articles. What, you say you did not see any? Bawhaaaaa!

Another problem with this vehicle is that if is is actually assigned to Rick, a waiver is required.  Guess what... no waiver is on the DFA website.

WAIVERS 1

WAVIERS 2

So ABC has a Deputy Director that uses his position for personal gain and benefit and has questionable possession and sole use of a state vehicle.  Not surprised? Me either.