State audit: Garland County bought 10 vehicles for $521,380 without seeking bids

HOT SPRINGS — Garland County purchased 10 vehicles at a total cost of $521,380 without soliciting competitive bids or formally waiving the bidding requirement, according to a state audit of the county’s 2024 finances that became public this week.

The finding is contained in Garland County’s audit report for the year ended Dec. 31, 2024, prepared by Arkansas Legislative Audit and dated June 16, 2026. The report was released when it went before the Legislative Joint Auditing Committee’s standing committee on counties, which met Thursday, Aug. 13, in Little Rock.

Auditors said the vehicle purchases did not comply with state purchasing laws, which generally require counties to seek competitive bids on large purchases or formally waive the requirement through proper procedures. The finding falls under the office of County Judge Darryl Mahoney, who serves as the county’s chief executive and purchasing authority.

The issue was communicated in a management letter, a step below a formal audit finding, which auditors describe as constructive feedback intended to help the county maintain compliance with state law and improve internal controls. According to the report, the matter was discussed with county officials during audit fieldwork and at an exit conference.

Otherwise, a clean report

Beyond the vehicle purchases, auditors gave Garland County high marks. The county received an unmodified opinion, the best available, on its financial statements as prepared under Arkansas’s regulatory basis of accounting. Auditors identified no material weaknesses in the county’s internal controls and no other instances of noncompliance.

That stands in contrast to neighboring counties reviewed at the same meeting. Miller County’s report, released the same day, included formal findings on construction contract bidding, $63,000 in Quorum Court retention bonuses that auditors said violated state law, and personal use of a county vehicle by the county assessor.

County finances in strong shape

The audited financial statements show Garland County ended 2024 in a robust financial position. The county’s general fund took in $25.9 million in revenue against $17.6 million in spending, and its general fund balance grew by $4.7 million during the year, from $40.4 million to $45.1 million.

Sales taxes were the county’s largest revenue source, bringing in $11.9 million to the general fund alone, nearly $3 million more than budgeted. Rising interest rates also paid off for the county, which earned $1.5 million in interest on its general fund, more than double what it had budgeted.

Law enforcement was the county’s largest general fund expense at $9.7 million, with another $13.2 million spent from other funds. The road fund spent $20.2 million on highways and streets, and the county’s sanitation operation, funded largely by $10.7 million in sanitation fees, spent $14.3 million.

What happens next

Reports presented to the Legislative Joint Auditing Committee are matters of public record under state law. Management letter comments do not require a formal response to the committee, but auditors review whether issues have been corrected in subsequent audit cycles, and repeat problems can be elevated to formal findings.

The full 43-page report, covering all county offices and funds, is available on the Arkansas Legislative Audit website at arklegaudit.gov under report ID LOCO02624.

This article is based on the Garland County, Arkansas audit report for the year ended Dec. 31, 2024, issued by Arkansas Legislative Audit. County officials have not yet been reached for comment.