Fort Smith Board to Review Parrot Island Waterpark Financial Reporting Recommendations

The city of Fort Smith's Audit Advisory Committee has presented financial reporting recommendations for Parrot Island Waterpark, including more detail on attendance and on any operational or infrastructure money provided by the city and Sebastian County. Talk Business & Politics reported that the board of directors will discuss the recommendations at its October 27 study session.

What the Fort Smith Audit Committee Recommended

The recommendations, described as "agreed-upon procedures," cover attendance trends, group events, sponsor revenue and park buy-outs, along with standard rates versus discount rates. The committee asked for revenue per attendance compared with the same month a year earlier, and for actual cash receipt amounts to be set against revenues recorded in the financial statements. It also sought information on significant repairs as they are discovered, insurance coverage, the handling of insurance claims and proceeds, overhead allocations, and any significant unexpected or unbudgeted expenses.

Further items include an accounts receivable aging report and an accounts payable aging report with detailed information on both, and clear reporting of how much money the city and county contributed toward waterpark operations and why the contribution was needed. The committee recommended adopting a capitalization policy with a depreciation schedule to provide information on infrastructure needs, and obtaining internal control policies and procedures from the new management company to look for gaps in controls.

Parrot Island Waterpark opened in 2015 at Ben Geren Regional Park, which is owned by Sebastian County, with initial construction costs shared by the county and the city. Grand Prairie, Texas-based American Resort Management has managed the park since it opened. The city received a letter from ARM on September 16 notifying the city and county that the company would not operate the park in 2027. Sebastian County Prosecuting Attorney Dan Shue announced September 25 that he was seeking a special prosecutor to investigate a Parrot Island Waterpark employee over theft allegations. Before that, the city's audit advisory committee and Internal Auditor Amanda Strange worked with accounting firm Forvis Mazars to review ARM's financial controls. Committee members include Fort Smith Directors Christina Catsavis, André Good and Neal Martin, who have asked for more details on expenses, especially repair costs reported in 2024 and 2025. Leak repairs in those years on the waterpark's lazy river totaled a little more than $500,000.

Parrot Island's Slide Project Costs

According to akta.pro company records, the Fort Smith board committed $4.2 million in public funds in 2024 to install five new water slides at the park after Sebastian County declined to match. In January 2026 the board approved an additional $2.689 million to complete the project, awarded without competitive bidding to Royal Ridge Construction. The park operates more than 400,000 gallons of water attractions, including a wave pool, activity pool, lazy river, slides and kiddie area, and its Caribbean Splash wave pool holds more than 85,000 gallons.

Accounting Corrections Elsewhere

Other companies have disclosed accounting corrections in October 2026. GoPro will restate its 2025 annual results and three quarterly reports after material accounting errors involving warrants and convertible debentures, The future of trading reported. Arrive AI appointed M&K CPAS as auditor effective October 13, 2026, following Stephano Slack's resignation, The future of trading reported. Cruzados corrected an accounting error in its 2025 results, reducing its reported loss from $730 million to $73.6 million, Diario Financiero reported. Pferdewetten.de must restate its 2024 annual report, focusing on intercompany loans of €38.7 million and possible write-downs, FinanzNachrichten.de reported.

What Comes Next for Parrot Island

The Fort Smith Board of Directors will take up the audit advisory committee's recommendations at its October 27 study session. American Resort Management has told the city and county it will not operate the park in 2027.