LITTLE ROCK, Ark. — The audit report into the purchase of a $19,000 lectern by the office of Gov. Sarah Huckabee Sanders was released Monday by the Arkansas Legislative Audit (ALA).
The Legislative Joint Auditing Committee released the report the day before they are set to meet and review the findings in a committee meeting.
An investigation was opened in Oct. 2023 when State Sen. Jimmy Hickey Jr. (R-Texarkana) made a request to the Legislative Joint Auditing Committee after local blogger Matt Campbell received records that revealed the purchase. Campbell received the records through a Freedom of Information Act request, which included the $18,475 lectern bought from Beckett Events LLC.
That would later be reimbursed by the Republican Party of Arkansas (RPA), but a whistleblower alleged documents were "altered" and "withheld" in relation to the purchase.
Sanders has claimed that the features included in the lectern were changes for height differences and audio equipment to ensure "the best sound quality" for media purposes.
The lectern has not appeared at any public events held by either Sanders or Republicans since it was purchased. Sanders has claimed in the past that if it was used, the media would "talk about nothing else" and "spend all of their time focused on things that frankly don't [impact Arkansans]."
The purchase of the lectern
In the report, the governor's office reached out in Feb. 2023 to Hannah Stone, who represented Salem Strategies, regarding information on "portable podiums" and a quote on a customized lectern similar to the one used in Sanders' inauguration.
Stone would provide an estimated cost between $10,000 and $15,000 for a customized lectern and the Governor's Office "could not recall any other quotes being obtained." But during the audit investigation, officials found out that a staff member with her office reached out to an audio and visual equipment dealer in Arkansas and "received quotes" for various podiums ranging from $800 to $1,500 as well as lighting systems ranging from $250 to $1,000 and sound systems ranging from $500 to $3,000.
Then in April 2023, Virginia Beckett with Beckett Events LLC. was added to communication of purchasing a custom lectern once the Governor's Office informed Stone the purchase was approved. Officials with ALA noted that it appears both Beckett and Stone worked at both companies.
The governor's staff said that because the podium was being made with "custom specifications," that the "vendor required payment before production could begin." In May 2023, officials with the Arkansas Dept. of Transformation and Shared Services (DTSS) explained pre-payment was not allowed due to state purchasing regulations, but a purchase order could be issued.
A P-Card instead of a purchase order was used to buy the lectern using "transition funds" for the podium before the end of the state fiscal year on June 30, 2023. In the report, these funds came from a Jan. 2023 request by the governor's office of $447,245 for the purchase of "necessary computer equipment and maintenance services."
Although it was estimated a custom lectern would cost between $10,000 to $15,000, it was purchased for $19,029 on June 8, 2023. In the final price, it included $2,200 for a road case, $2,500 for a consulting fee, and $2,200 for shipping of the lectern and a road case.
During a review of the invoice, the legislative auditors discovered three versions of the invoice from Beckett Events. Two included the handwritten notation "To be reimbursed - LH," while a third version did not have the note.
The summary report
In the audit's report, officials conclude that while the cost for the road case and shipping it "appear reasonable" they could not "determine the reasonableness of the consulting fee." Auditors also noted that couldn't determine whether the lectern's cost was appropriate due to "lack of vendor responses" and documentation on custom specifications.
Staff with the ALA made multiple efforts to contact Beckett Events, Salem Strategies, and Miller's Presentation Furniture and were met with no response.
Sanders' office said that the lectern was made with specific height measurements and included a light but no microphone or other electronic pieces were provided with it. Since there was a "lack of formal purchasing documents" or a detailed invoice, the ALA was unable to confirm that information.
The podium would then be delivered in Aug. 2023, but DTSS was not notified of its delivery until Sept. 11, 2023 when staff asked about the lectern's status. No documentation was provided by the governor's office nor the RPA of an exact delivery date for the road case, the report noted.
A "bill of lading" was shredded and Sanders' office said it was done inadvertently. A bill of lading contains details of the lectern's shipment, which would include information related to its weight, destination, dimensions, and additional shipping services. A replacement copy was then obtained by the governor's office on Oct. 18, 2023.
While the governor's office did ask RPA to reimburse the state on Sept. 14, 2023 for the lectern's purchase, there was "no indication" they were "seeking reimbursement" prior to a FOIA request made on Sept. 11 by Matt Campbell.
"ALA maintains that the podium and road case remain state property and should have been disposed of through [marketing-and-redistribution process]," the report stated.
The report also said that while the governor's office is "exempt from procurement law for purchasing," it is not exempt from "redistribution requirements" under Ark. Code Ann. §§ 19-4-1503, 25-8-106, "as interpreted by Op. Att’y Gen. no. 91-416."
ALA also provided seven instances of "potential noncompliance" of state law:
- Payment for the podium before it was delivered resulted in a potential violation of Ark. Code Ann. § 19-4-1206(b)(3)(B) by the bonded disbursing officer.
- The podium purchase was applied to operating expenses, in potential noncompliance with Ark. Code Ann. § 19-4-522(d)(1)(N), which does not allow for the purchase of equipment subject to capitalization to be allocated to operating expenses.
- DTSS was not notified of the delivery, which prohibited the transaction from being properly recorded and capitalized in AASIS, and formal purchasing documents or a detailed invoice was not obtained prior to payment to ensure the podium met custom height specifications, in potential noncompliance with Ark. Code Ann. § 19-4-1103(b).
- An exemption from the State Procurement Director for disposal of state property was not sought, nor was credit for state property requested from DFA, in potential noncompliance with Ark. Code Ann. §§ 19-4-1503, 25-8-106. Instead, the Governor’s Office directly sought reimbursement for the podium and case from the RPA.
- The bill of lading (see Appendix K) was shredded by a member of the Governor’s Office staff, in potential violation of requirements for document retention found in Ark. Code Ann. §§ 19-4-1107(2)(A), 19-4-1108(a).
- The business expense justification statement (see Appendix J) was not created by Governor’s Office staff on the day of podium purchase, in potential violation of Ark. Code Ann. § 19-4-2104.
- During review of a FOIA request related to the podium purchase, ALA discovered three versions of the Beckett Events invoice (see Appendix O), two of which contained the handwritten notation “To be reimbursed – LH.” The Executive Assistant to the Governor’s Office Deputy Chief of Staff made the handwritten notations, altering the public record after it was entered into AASIS on June 28, 2023, in potential conflict with language expressed in Ark. Code Ann. § 5-54-121 and interpreted by Williams v. State, 346 Ark. 304, 57 S.W.3d 706 (Oct. 25, 2001).
The ALA report was forwarded to Attorney General Tim Griffin as well as Sixth Judicial District Prosecuting Attorney Will Jones. In response, Jones said they will review the audit report but is prohibited from discussing the matter "any further."
Gov. Sanders declined an offer to "speak with or provided a statement to ALA" during the investigation, according to the report.
To read the full report, click here.
Recommendations by ALA
In its recommendations to Gov. Sanders and her office, it asks staff to do the following:
- Establish adequate internal controls to ensure that payment for purchases is not issued prior to delivery and that all purchases are properly accounted for in AASIS.
- Retain all original documentation related to the purchase and delivery of goods.
- Ensure timely completion of required forms related to expenditures.
- Dispose of state property using methods prescribed by Arkansas Code.
- Ensure that the public record is not altered.
- Comply with FOIA regarding provision of public information to requesters.
Additionally, ALA recommended that legislators define the "disbursing officer and business office of the Governor's Office" when it comes to the delivery of items prior to payment.
ALA also asks that legislators clarify the "custodian of record" for the governor's office regarding FOIA requests.
Governor's response
In an letter responding to the report, the governor's office claims no laws were broken and labeled the report as "deeply flawed."
Sanders' office also claimed the investigation into the lectern purchase was a "waste of taxpayer resources and time."
"The office lawfully purchased a podium and travel case. It was later determined that RPA should lawfully purchase it," the governor's office said. "No laws were broken. No fraud was committed."
The governor's office believes it is not a state agency, but rather a constitutional office and "thereby exempting the office from the majority of agency accounting and budgetary procedures, statutory capitalization requirements, and procurement rules for disposing of assets."
The office also claimed that a handwritten note on the invoice does not constitution a violation of state law.
On the day the report was released, Sanders' spokesperson Alexa Henning said, "The facts outlined in the report demonstrate what the governor’s office said all along: we followed the law, and the state was fully reimbursed with private funds for the podium, at no cost to the taxpayers."
Sanders would also make a post to social media with the caption, "My thoughts on the podium..." with a video attached showing off the lectern set to music.
Attorney General Tim Griffin said he was "perplexed" that ALA's analysis "rests on the mistaken conclusion that the Governor's office is a 'state agency' for the purposes of certain statutes."
“In reaching that conclusion, Legislative Audit failed to cite Attorney General Opinion 93-146, the most relevant authority on the question, while including citations to several Attorney General Opinions that have no discernible relevance to the question," Griffin continued. "I would direct Legislative Audit and other interested parties to Attorney General Opinion 2024-056 for a more thorough analysis of the law in this area. I am continuing to review the report, which was transmitted to my office in accordance with state law.”
The Democratic Party of Arkansas called the report "damning" and said that laws were "potentially broken in using state money, obfuscating the purchase, then later transferring the lectern" to the Republican Party of Arkansas.
"This is not and never was a partisan matter, but a very serious investigation of wrongdoing by government officials who may have broken as many as seven state laws," said Democratic Party of Arkansas Chair Grant Tennille. "We call on the Attorney General and Sixth Judicial District Prosecutor to swiftly deliver justice to any government official found to have committed an act of corruption in our state government."