Connect with us

Finance

Crawford County poised to pass new budget after major financial blows | Northwest Arkansas Democrat-Gazette

Published

on

Crawford County poised to pass new budget after major financial blows | Northwest Arkansas Democrat-Gazette

VAN BUREN — The Crawford County 2025 operating budget is up for a vote Monday by the Quorum Court, and it comes in the wake of a couple of financially tumultuous years.

Justices of the Peace are set to vote on the annual operating budget in a meeting that starts at 7 p.m. Monday in the upstairs courtroom at the Crawford County Courthouse, 300 Main St., Van Buren.

Prior to that session, the Quorum Court’s personnel committee meets at 6:30 p.m. and the budget committee meets at 6:45 p.m.

The budget panel agenda includes a request from county Judge Chris Keith to add $6,000 to the county general fund “for retaining legal fees on 1st Amendment lawsuit.”

Multiple issues have had big impacts on the county’s financial situation in the last couple of years. They include:

Advertisement

A financial payout to the District 6 Rural Fire Department due to a 2019 lawsuit decided in 2023.

Two lawsuits sparked by the county’s change (now reversed) in how its library system handles LGBTQ-related books.

A paperwork fumble that meant the county lost out on about $3 million in sales tax revenue last year.

Going into 2025, costs from the pair of library-related lawsuits are ongoing and likely will require more taxpayer dollars.

FIRE DISTRICT SUIT

Advertisement

The county’s District 6 Rural Fire Department board voted in April 2019 for the squad to become a fire protection district.

According to changes in Arkansas law that year, after the board submitted the notice to the Quorum Court, the county then had 60 days to approve it.

That never happened.

In November 2019, District 6 filed a lawsuit in Crawford County Circuit Court alleging that Crawford County, its Quorum Court and then-county Judge Dennis Gilstrap failed to approve the request.

District No. 6, located at 1022 Pleasant Valley Road in Van Buren, initially asked for $160,000, according to court filings.

Advertisement

Court documents in the case indicate that the fire squad was “entitled as a matter of law to conversion into a statutory fire protection district effective no later than June 23, 2019.”

The lawsuit alleged that the county “must grant the petition.”

Becoming a fire protection district allowed the rural squad to collect property taxes to support its operations.

In a summary judgment decision in September 2023, Judge Marc McCune ruled in favor of the fire district and ordered the county to pay $221,273 plus interest as provided for by law, according to court records.

Crawford County appealed the case but did not prevail. Court documents show the county paid the damages by June 25 this year.

Advertisement

LIBRARY LAWSUITS

Before the end of 2024, Crawford County will have spent at least $400,000 fighting a pair of lawsuits over its late 2022 and early 2023 change in how the Crawford County Library System catalogues LGBTQ-related library books.

Litigation already has resulted in the county rescinding the new policies but its sparring in federal court is not over.

Pressure on the Quorum Court at the end of 2022 from residents who spoke out about displays of LGBTQ-themed books in the system libraries led to the creation of a “social section” of books in early 2023.

Those volumes that were related to gay issues were marked with green stickers and collected into a certain portion of shelves.

Advertisement

As a result, two lawsuits related to the issue were filed in 2023 in U.S. District Court in the Western District of Arkansas.

The first is Virden v. Crawford County, with three local mothers as plaintiffs who alleged the county’s treatment of LGBTQ-related books violated their First Amendment rights.

After a summary judgment in their favor Sept. 30 this year by Judge P.K. Holmes III, the Virden plaintiffs filed in court to have Crawford County, as defendants, pay their legal costs.

In civil rights cases such as this one, plaintiffs who prevail can seek “a reasonable attorney’s fee as part of the costs,” according to 42 U.S. Code 1988.

Federal Judge Timothy L. Brooks must decide whether the county will pay the plaintiffs’ more than $121,500 legal bill.

Advertisement

The county is fighting the amount of the plaintiffs’ legal fees and costs.

The second lawsuit regarding the library books involves the Fayetteville library, other libraries and book sellers in Arkansas. Defendants are Crawford County and county Judge Chris Keith and the prosecuting attorneys in Arkansas’ 28 judicial districts.

It centers on two sections of Act 372, the new Arkansas law on school and library materials.

The last action on that case was Brooks’s cancellation Oct. 29 of all future hearings on the matter. What action is next — and the kind of wild card that will mean for Crawford County’s budget — remains to be seen.

The county’s cost figures thus far between the two library-related cases include:

Advertisement

$40,678.50: Severance for ousted library director.

$240,735.05: Legal defense fees, so far, in the Virden v. Crawford County case lost by the county.

$121,558.31: Plaintiffs’ fees so far in the Virden case (if Brooks orders the county to pay the costs).

$118,300: Legal defense fees, as of Nov. 15, in the Fayetteville Public Library et al v. Crawford County, Arkansas et al, Act 372 case.

That adds up to a potential of more than $525,000 that the library book controversy may cost county taxpayers.

Advertisement

SALES TAX REVENUE

The upcoming new chapter on Crawford County’s financial health comes on the heels of the county’s loss of about $3 million after it was unable to collect sales tax for three months last year.

Local officials failed to file the necessary paperwork with the state, said Scott Hardin, spokesman for the Arkansas Department of Finance and Administration.

In May 2022, Crawford County residents voted to continue a 1% county sales tax from Sept. 30, 2023, through Sept. 30, 2031.

Last year, according to Hardin, officials in Crawford County needed to file paperwork notifying his department of a change in its sales tax rate by July 3, 90 days before it was to take effect.

Advertisement

Because that was not done, Hardin said, the county could not collect any revenue from the sales tax from Oct. 1 through Dec. 31, 2023.

Keith said revenue from the tax is divided between the county and the nine municipalities in the county based on population.

The county received more than $4.3 million from its side of the tax in 2022, according to Keith.

Advertisement
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Finance

How Natura &Co Is Transforming Finance with Generative AI on SAP S/4HANA

Published

on

How Natura &Co Is Transforming Finance with Generative AI on SAP S/4HANA

For a company navigating one of the most consequential transformations in its history, financial clarity is not optional—it is essential. Natura &Co, the Brazilian personal care and cosmetics group behind iconic brands such as Natura and Avon, has long been committed to combining purpose-driven business with commercial performance. After a period of strategic portfolio reshaping, including the divestiture of its Aesop and The Body Shop holdings, the company is now sharpening its focus on profitability and operational excellence across Latin America and global markets.

At the center of that effort sits a deceptively complex challenge: understanding, in real time, which revenue and cost factors are driving or eroding gross margin across a highly diversified business. For years, answering that question meant manual reporting, delayed insights, and finance teams spending valuable time on data gathering rather than analysis.

That’s now changing, thanks to a co-innovation initiative developed together with SAP and Numen, a global SAP partner specializing in digital transformation and enterprise software implementation.

From manual reporting to proactive decision intelligence

An enterprise AI platform built for your business

The project’s goal was to replace a labor-intensive gross margin analysis process with a generative AI application embedded directly into Natura &Co’s financial workflows. Built on SAP Business AI Platform, SAP’s unified foundation integrating business technology, data, and AI capabilities, the application connects directly to data in SAP S/4HANA to provide finance teams with automated insights and narrative recommendations in real time, without the need for manual data pulls or offline reporting.

Advertisement

The application enables users to explore revenue, cost, and margin drivers interactively, identifying at a glance which elements are protecting or eroding margin performance across markets and product lines. Crucially, human oversight remains central to the design: the AI application generates insights, while finance professionals retain full control over interpretation and decisions.

“The implementation of gross margin analysis using AI in SAP S/4HANA marked an inflection point in the analytical capability of our finance area,” said Rogério Dias Garcia, tech manager, ERP Latam, Natura &Co. “We overcame delays and raised the standard of insights by integrating margin analysis from SAP S/4HANA with a large language model connected via the SAP AI Core layer. This architecture allowed us to provide, in an agile, secure, and completely anonymous manner, a stratified and precise view of gross margin offenders and protectors—discriminating exactly which revenue or cost elements were driving market performance.”

A collaborative architecture for scalable AI adoption

Natura &Co’s application derived from a prototype SAP partner Numen created in early 2024 at SAP’s global Hack2Build on business AI, leveraging the generative AI capabilities of SAP Business AI Platform. The solution was designed and developed through close collaboration between Natura &Co, Numen, and SAP. From the outset, the approach was to align AI adoption with concrete business priorities, ensuring the application would be scalable and production-ready rather than a standalone prototype.

Numen brought deep SAP implementation expertise to the project, combining knowledge of SAP S/4HANA architecture with hands-on experience in building solutions on SAP Business AI Platform. The technology stack—SAP S/4HANA, SAP AI Core, SAP Fiori, and SAP Business Technology Platform—provided the secure, integrated foundation needed to connect financial data with generative AI capabilities in an enterprise context.

“SAP enabled the transformation by providing the technological foundation and expert support,” said Carlos Aravechia, head of Data Design & Intelligence at Numen.

Advertisement

The success of the project has validated a broader conviction at Natura &Co: that generative AI, embedded directly in ERP workflows, can fundamentally reposition finance from a transactional function to a strategic business partner.

A blueprint for other businesses

The Natura &Co project demonstrates a pattern that other organizations can replicate, particularly those running SAP S/4HANA. The combination of structured ERP data with the contextual reasoning capabilities of large language models creates a foundation for decision intelligence that goes well beyond traditional business intelligence tools.

The project was built within a six-month co-innovation sprint and went live in August 2025. It is currently in use across Natura &Co’s Equador operations.

Looking ahead, Natura &Co is already planning the next phase: integrating Joule Agents to further automate the extraction of standard analytical content and deepen the AI-driven optimization of financial processes.

“The success of this initiative validates the transformative potential of embedded AI within our ERP,” Dias Garcia noted. “We are now ready to move forward—deepening these insights and integrating the capability of Joule Agents to maximize the extraction of standard content and further optimize our business decisions.”

Advertisement

For SAP customers evaluating how to move from AI experimentation to AI in production, the Natura &Co project offers a concrete, replicable model: start with a high-value, well-defined business process, embed AI directly into existing workflows, and build in human oversight from the start.


Get weekly updates from the SAP News Center, delivered straight to your inbox

Continue Reading

Finance

Low-income Chinese girl aces gaokao, inspires live-streamers offering help

Published

on

Low-income Chinese girl aces gaokao, inspires live-streamers offering help

A girl from a disadvantaged rural family in central China topped this year’s gaokao, attracting numerous live-streamers eager to finance her education, which she declined.

The home of 18-year-old secondary school graduate Han Yaping in a Henan province village was recently bustling with live-streamers.

This attention came after Han achieved an impressive score of 699 out of 750 in the gaokao, China’s national college entrance exam.

She has received offers from China’s two leading universities, Tsinghua University and Peking University.

Han’s accomplishment is particularly remarkable given her family’s impoverished circumstances.

Advertisement

Her mother suffers from ankylosing spondylitis, an inflammatory arthritis affecting the spine, preventing her from working. Her father, who earns a living through farming and odd jobs, serves as the family’s sole provider. Han also has a younger sister.

Continue Reading

Finance

UK financial regulator publishes landmark AI review

Published

on

UK financial regulator publishes landmark AI review

The UK’s Financial Conduct Authority (FCA) published a landmark review on Monday that proposes recommendations to regulate the impact of artificial intelligence (AI) on the financial decisions made by consumers.

The review, titled the Mills Review, anticipates that both consumers and firms will start delegating “more financial decision-making to AI systems,” including for agreements, initiating transactions, and executing decisions “within agreed parameters.” One of the key findings of the review outlined that while AI can help bridge advice gaps and “support growth,” there remain risks “associated with fraud, cyber security, and consumer harm.” Conducting the review, Sheldon Mills highlighted that “AI can also amplify risks: bias, discrimination, exclusion, opaque decision-making (particularly when multiple AI models interact), misleading or hallucinatory advice and erosion of consumer trust.”

The review stated that presently, one in five adults in the UK are “already open to AI making decisions for them,” particularly when decisions feel “complex or high stakes.” It found that roughly 26 percent of the population “trust general-purpose tools such as ChatGPT, Claude or Gemini for financial advice” with little awareness that such platforms provide no “formal routes to recourse” or protections.

Overall, the Mills Review identified four areas that it anticipates will be impacted by AI in the financial sector: “the transformation of firms,” “new consumer journeys,” “a reshaped competition landscape,” and “amplified financial crime and cyber risk.” The FCA projected the shift in how consumers and firms consult AI to take place by 2030.

The Mills Review put forth seven “priority” recommendations to be considered by the FCA Board. It recommended that any transitions to autonomous AI models be monitored and that regulatory frameworks and perimeters be adapted and secured. The review called for the strengthening of “system-wide coordination and oversight,” the scaling up of the FCA’s AI Lab to enable it to support AI models and innovation for agentic finance, and an “AI-enabled agentic supervisory model” to be built and adopted.   Finally, it recommended that a trusted “public-interest AI-enabled financial capability service” be developed.

Advertisement

The FCA announced, in the press release, that it will launch an AI “good and poor practice publication” in late 2026.

Continue Reading
Advertisement

Trending