Fort Smith human resources director retains job after internal auditor mishap
by April 29, 2025 9:02 pm 1,970 views
The Fort Smith Board of Directors settle in prior to Tuesday’s (April 29) special meeting and study session.
The Fort Smith Board of Directors on Tuesday (April 29) did not fire Rick Lolley, the city’s human resources director. Lolley was on the hot seat following a failed attempt to hire an internal auditor.
Instead, the board voted unanimously to authorize Acting City Administrator Jeff Dingman to “initiate” any appropriate disciplinary actions against Lolley who, based on responses from the City of Fort Smith, did not provide the board all the background info on an internal auditor candidate. The board action followed more than two hours in executive session.
The board on April 22 unanimously approved a resolution to hire Rebecca Cowan for the position of internal auditor with an annual salary of $110,000. On April 23, Talk Business & Politics was the first to report that Cowan faced felony charges related to a 2024 stalking charge. Cowan, who is scheduled for court in Poteau on May 21, is charged with a felony but is not a convicted felon.
On April 24, the board met in a special called session to rescind the resolution to hire Cowan. Board members interviewed by Talk Business & Politics said they were not aware of Cowan’s legal situation prior to the April 22 vote.
However, there were members of city administration who did know about Cowan’s background.
Keller, Texas-based SGR was paid $22,889 by the city to conduct a nationwide recruitment effort to hire an internal auditor, a position open since April 1, 2024. The contract between the city and SGR was approved May 6, 2024. SGR conducts a second search for candidates in January 2025 when the first round failed to deliver a suitable candidate. The total cost included both searches.
Although the contract indicated that SGR would be paid $1,250 to conduct a “Comprehensive Media Report” on each candidate and be paid $500 provide a “Background Investigation Report” on each candidate, the city said SGR did not provide either for Cowan.
“(Fort Smith) Human Resources produced the background check and relayed the information to Administration per City protocol,” noted a response from the city when asked if background checks were made on Cowan prior to the board’s April 22 decision to hire her.
A simple Internet search would have discovered Cowan’s legal situation, so it is unclear the extent of background vetting conducted by SGR or the city.
“Reports and other documents were presented to the Board of Directors; however, a background check was not included,” noted a response from the city to several questions posed by Talk Business & Politics. “In her pre-screening questionnaire, which was provided to the Board, Ms. Cowan was asked whether a background check would reveal any concerning information. She disclosed that she was currently involved in litigation related to a highly contested divorce.”
Board members have said they prefer to have the city conduct a new search for internal auditor without using a recruitment firm. No details have yet been provided about the nature of that search.