Intermodal Board Hears Audit Reports

A good portion of the board meeting of the Southeast Arkansas Intermodal Authority, conducted May, 18th, was taken up being briefed by Emrich & Scroggins concerning the recent audit of the authority.  The audit covered 2012, 2013 and 2014.  Stacy D. Scroggins, CPA, made the presentation to the board and covered the various sections of the audit.  The audit consisted of financial reports and compliance matters.  According to Mr. Scroggins, the finances were in very good  order and three compliance issues were noted.

While important to note, the compliance issues were considered minor.  The audit was late being conducted, there was a matter of complying with federal guidelines on auditing federal grant funds and the procurement of consulting services was mentioned.  The auditor was unable to find documentation as to how the consulting engineer was hired to comply with state law.  Some members of the board felt that procedures had been followed but documentation was not located.  The board voted to approve the audit and then voted to hire Emrich & Scroggins to conduct the 2015 audit wihich is due later this year.


In other business the authority voted to ask Monticello City Attorney Whit Barton to review an agreement with Genesee & Wyoming Railroad relating to work the company is planning for a rail crossing within the intermodal park.

The board was told that a prospect is looking at the intermodal park and that transportation is a major issue of concern.  There is a need to get a rail line into Yellow Bend Port so products can be moved from the intermodal site to Yellow Bend.  There have been efforts underway for years to build the rail line, but to date none have been unsuccessful.  Authority Chairman John Lipton told staff of the Arkansas Congressional Delegation, present for the meeting, that help is needed to secure federal funds to get the rail built.  Mayor Zack Tucker of Monticello suggested that in-kind assistance from the cities and counties that own the authority could be helpful in building some of the infrastructure for the rail.  This would require additional expenditures from Warren, Monticello, Drew and Bradley counties.

Near the end  of the meeting, the board was told that the investment in the intermodal park is around $5,318,000.00 dollars, not counting cost of the land.  The facility is owned 25% each by Warren, Monticello, Drew County and Bradley County.

According to the financial statement, the authority currently owes $509,147.19 as a result of a loan used to cover local match requirements.  The report listed receivables being charged in the amount of $677,464.29 to the two cities and two counties.  The amounts listed were:
Monticello-$127,333.69
Warren-$128,681.23
Drew County-$175,776.43
Bradley County-$245,672.94
The note is payable to commercial Bank of Monticello and is set up at an interest rate of 4.5%.