Arkansas Treasurer Martha Shoffner is set to appear at a November session of the Legislative Joint Auditing Committee to answer questions raised by state auditors about the agency’s purchases and sales of bonds as investments.
The committee’s co-chair, Rep. Tim Summers, R-Bentonville, said a special session will be held after the elections to hear from Shoffner.
Shoffner appeared before the committee in September after a subpoena was issued when she did not show up for a scheduled session. She told lawmakers she did know why the transactions occurred.
Autumn Sanson, the chief investment officer at the treasury, said she advised Shoffner not to sell the bonds but Shoffner denied knowledge of any warnings.
A report in September by the Division of Legislative Audit said the state lost $58,173 in 12 bond transactions with a par value of $240 million due to sales by the treasurer’s office between July 1, 2011, and May 17, 2012.
Auditors said the treasurer’s office lost money by selling the bonds to brokers before the call date and then replacing them with similar bonds, even though some of the bonds sold above par.
Chief deputy treasurer Debbie Rogers said the questionable sales are being researched.
Shoffner was elected to her first four-year term as state treasurer in 2006 and re-elected in 2010.