§ 21-2-708 - Notice and proof of losses -- Investigations -- Restitution. - Arkansas Statutes

21-2-708. Notice and proof of losses -- Investigations -- Restitution.

(a) It shall be the duty and responsibility of the Legislative Auditor, with the approval of the Legislative Joint Auditing Committee, to give notice and make proof of loss to the board on fidelity bonds on behalf of any public official, officer, or employee when the audit report of the records of any such official, officer, or employee reflects apparent unauthorized disbursements or unaccounted-for funds or property for which the public official, officer, or employee may be liable.

(b) The Legislative Auditor shall request the appropriate prosecuting attorney or the Attorney General to assist the state or the appropriate political subdivision in obtaining restitution when the audit report reflects apparent unauthorized disbursements or unaccounted-for funds or property for which the public official, officer, or employee may be liable.

(c) (1) For the purpose of obtaining restitution as provided in subsection (b) of this section, the Self-Insured Fidelity Bond Program and the participating governmental entity shall be deemed victims.

(2) In any criminal prosecution against the official or employee causing the loss, where such official or employee enters a plea of guilty or nolo contendere, or is found guilty following a trial, restitution shall be awarded to the participating governmental entity for the entire amount of its unreimbursed losses and to the program for the entire amount of its payment to the participating governmental entity.