Missing computers, a pending legislative audit, and a fired executive director are the fallout from charges of mismanagement at the Arkansas Psychology Board that arose in March. The board terminated its executive director, Sheila Pauley, March 24 and, soon after, Pauley was arrested for felony insurance fraud based on allegations that she had used her own insurance coverage to provide prescription medications to her uninsured daughter.
The central Department of Finance Administration (DFA) says it took over the board after several unsuccessful tries to get a budget proposal from the director and amid concerns that money was not being deposited promptly. The psychology board’s funds were moved to the State Treasury which will handle payments, and the board will receive a monthly list of expenditures for review. The DFA is providing training for board members to enhance their knowledge about business management of the office.
At its May 16 meeting, the board stated that problems arose because communication from the central agency (the Department of Finance and Administration) were being channeled through the executive director, and board members were unable to get needed information. Although no monetary loss is known as yet, the board found after an internal audit that two computers were missing. It sent a letter to Pauley asking her to return the computers if they are in her possession.
State legislative staff also say they are conducting an audit of the board, which has an annual budget of about $200,000.
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