Fort Smith Board to Review Parrot Island Audit Results
The city will address new financial reporting recommendations for the waterpark at a study session on October 27, 2026.
Updated on Oct. 25, 2026 in Theme Parks
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Should local governments implement stricter financial reporting requirements for city-owned recreational facilities?
On October 27, 2026, the Fort Smith Board of Directors will meet to review audit recommendations concerning financial reporting at Parrot Island Waterpark. This review follows ongoing scrutiny regarding the management and capital expenditures of the facility.
Why it matters
The discussion addresses concerns regarding the financial management of the waterpark and includes a push for more transparent reporting. These actions come as the city prepares for a major operational transition following the park manager's decision to exit.
Repair costs for the lazy river totaled over $500,000 between 2024 and 2025. Additionally, the city approved contracts exceeding $2.415 million in March 2026 for water pump and slide installations.
The players
American Resort Management
This firm has managed Parrot Island Waterpark since 2015 and recently announced it will cease operations in 2027.
Dan Shue
As the Sebastian County Prosecuting Attorney, he is seeking a special prosecutor to investigate theft allegations against a waterpark employee.
Amanda Strange
She serves as the Internal Auditor who reviewed financial controls for the facility alongside the committee and outside consultants.
The details
The Audit Advisory Committee recommended that the city adopt a formal capitalization policy and a depreciation schedule for the waterpark. These changes aim to improve the tracking of attendance, revenues, and accounts payable, following a review conducted with the firm Forvis Mazars.
Timeline
Parrot Island Waterpark first opened at Ben Geren Regional Park in 2015.
The Fort Smith Board approved $2.415 million in slide installation contracts in March 2026.
The Fort Smith Board will discuss audit recommendations during a study session on October 27, 2026.
Travel Outlook
The adoption of standardized capitalization and depreciation policies aligns municipal waterpark operations with established government accounting practices. This shift marks a departure from the historical management style employed during the facility's first decade of operation.
Residents should be aware that the future management of the waterpark will change in 2027, as the current operator has opted not to renew. These financial discussions may influence future admission policies or park maintenance schedules as the city adjusts its fiscal approach.
The takeaway
The move toward stricter financial reporting serves as a critical step in stabilizing the long-term viability of city-owned recreation sites. Residents can expect greater transparency regarding how tax dollars are allocated for facility maintenance and expansion projects moving forward.
What happens next
The Fort Smith Board of Directors is scheduled to convene for its study session regarding the audit recommendations on October 27, 2026.
Further reading
For more background on regional leisure facility oversight, visit the Theme Parks section.
More information
Review the full study session agenda and audit recommendations to see the proposed financial oversight changes.
Live Poll
Should local governments implement stricter financial reporting requirements for city-owned recreational facilities?
