Audit begins with Parrot Island Waterpark management firm

Accounting firm Forvis Mazars has begun its audit of American Resort Management’s (ARM) finances related to the operation of Parrot Island Waterpark. The waterpark, jointly owned by Sebastian County and the city of Fort Smith, has been open since 2015.

The audit was requested by the Fort Smith Board of Directors, and follows what has been a controversial plan acquire and install five waterslides at the park. The audit will not include the waterslide expansion, and is not the result of any allegations of wrongdoing.

The Fort Smith board initially voted in July 2024 to spend $2.1 million on the slides and installation, with Sebastian County expected to also spend $2.1 million. The Sebastian County Quorum Court voted twice against buying the slides. The Fort Smith board voted in September 2024 to pick up the other $2.1 million and continue with the purchase and installation of the slides.

It was learned in October 2025 that the cost to install the five slides would push beyond the $4.2 million approved for the project. The board on March 17 approved, in a 4-3 vote, to budget another $2.415 million toward installation of the five waterslides.

David Coleman, with Springfield, Mo.-based Forvis Mazars, said during an April 9 meeting of the city’s Audit Advisory Committee that he and others with Forvis worked with Amanda Strange, director of internal audit for the city of Fort Smith, to develop the audit plan. He said after the initial phone meeting with ARM they have received 70% to 80% of the initial request for information. Members of the audit committee include Fort Smith Directors Christina Catsavis, André Good, and Neal Martin. The three board members attended the April 9 meeting.

Coleman said the first call with Grand Prairie, Texas-based ARM was positive, and they received some requested information within an hour after the phone call. He said the first call was with Drew Peterson, the Parrot Island general manager. Coleman said ARM corporate officials are expected to be on future weekly calls, which are set for each Tuesday. He said the audit is a “high priority” for Forvis and “is a high priority for them (ARM) from what I’ve seen so far.”

“It’s been good so far. They are very receptive of what we’re asking, of what we’re trying to accomplish,” Coleman told the committee, adding that “the conversation went well Tuesday.”

Coleman said what follows are procedures and data analysis that “are pretty detailed,” with part of that challenge providing “findings” that are thorough but understandable to the board and the public. The goal is to have the audit report to the city by June, possibly May, he said.

“I can tell you that we’re not going to sit idle on this at any point in time,” Coleman said. “We’re dedicated to working on this until it’s done. … If I’m not getting cooperation I will report back to Amanda, and she will report to you all, or I can come back and talk to you about it.”

Fort Smith Director Christina Catsavis, who led the push for an audit, said she is happy to see the audit begin.

“I am pleased that they have begun the process and it appears they have a strong plan in place to move forward,” Catsavis said. “Forvis has indicated responses from ARM will be recorded in the findings for board review which I feel is very important.”

The Fort Smith board also on March 17 voted to extend the waterpark management contract with ARM through the 2026 season, with new management proposals reviewed prior to the 2027 season. The Sebastian County Quorum Court also voted to extend the management agreement.

The audit is estimated to cost between $30,000 and $40,000, with ARM paying the fee from its 2026 Parrot Island operating budget.