Lexington Herald Leader Editorial: Rein In Associations' Spending".
Rein in associations' spending
"Our review noted instances where business expenses were not supported by an approved expense report. Expense reports were being submitted which did not have receipts attached; did not identify the individuals for whom the expense was incurred; and on substantially all expenses there was no stated business purpose for the expense."
No, we're not presuming to suggest language to be included in the reports state Auditor Crit Luallen's office will release after completing what are expected to be lengthy audits of the Kentucky Association of Counties and the Kentucky League of Cities.
We're quoting from a 1993 review of KACo conducted by then-Auditor Ben Chandler's office — specifically, the portion relating to travel and entertainment expenses — to explain why Kentuckians might have experienced a feeling of deja vu last week while reading Herald-Leader stories on KACo's current excesses.
Of course, when you look back at that audit, you realize the folks running the organization at the time were nickel-and-dimers compared to today's in crowd.
The 1993 review found that seven KACo officials ran up about $19,000 in travel and entertainment expenses during 1992.
That's less than the tab for the three priciest meals (out of 50 costing $1,000 or more) KACo paid for during the last two years as five top executives racked up expenses totaling nearly $600,000, often with minimal documentation.
For instance, the records of who attended those expensive meals are sketchy at best.
Considering such astonishing profligacy and similarly lavish spending detailed in recent stories about the League, we applaud Luallen's decision to conduct thorough audits of the two agencies.
But that 1993 audit of KACo stands as testament to the reality that shining the light on wasteful practices briefly before letting them recede into the darkness for several years accomplishes very little.
KACo obviously did not learn from its own experience. And the League, if it was even paying attention to the review of a kindred organization, didn't get the message either.
So, as comprehensive as we expect them to be, the audits conducted by Luallen's office must not be the total extent of official reaction to the failure of these agencies to demonstrate even modest fiscal responsibility in the handling of the public money that provides the bulk of their funding.
Kentucky's lawmakers need to step up on this issue as well — and not just by asking KACo and League officials to explain their behavior before a legislative committee, as state Sen. Damon Thayer has proposed.
Yes, these officials need to be grilled, and grilled hard, in a public setting. But they also need to be restrained in the future.
At a minimum, lawmakers ought to ensure that KACo and the League receive regular visits from the state auditor's staff.
They need not be annual visits, but they need to be frequent enough to keep the agencies' officials from slipping back into bad habits.
Another issue legislators ought to address is KACo's practice of offering insurance, paid for with public funds, that covers legal defense costs for county officials facing criminal charges.
That outrage cannot be considered good public policy by any stretch of the imagination.
Finally, lawmakers need to discuss the core failure that allowed the wastefulness to go unchecked at KACo and the League — the failure of the boards of those agencies to provide a level of oversight that could keep the spending of their executives in check.
Simply put, the board members of these agencies need more training in regard to their fiduciary responsibility.
Lawmakers should explore whether they can create a method for providing that training for board members of agencies, such as KACo and the League, that rely on tax dollars for a majority of their funding.
"Our review noted instances where business expenses were not supported by an approved expense report. Expense reports were being submitted which did not have receipts attached; did not identify the individuals for whom the expense was incurred; and on substantially all expenses there was no stated business purpose for the expense."
No, we're not presuming to suggest language to be included in the reports state Auditor Crit Luallen's office will release after completing what are expected to be lengthy audits of the Kentucky Association of Counties and the Kentucky League of Cities.
We're quoting from a 1993 review of KACo conducted by then-Auditor Ben Chandler's office — specifically, the portion relating to travel and entertainment expenses — to explain why Kentuckians might have experienced a feeling of deja vu last week while reading Herald-Leader stories on KACo's current excesses.
Of course, when you look back at that audit, you realize the folks running the organization at the time were nickel-and-dimers compared to today's in crowd.
The 1993 review found that seven KACo officials ran up about $19,000 in travel and entertainment expenses during 1992.
That's less than the tab for the three priciest meals (out of 50 costing $1,000 or more) KACo paid for during the last two years as five top executives racked up expenses totaling nearly $600,000, often with minimal documentation.
For instance, the records of who attended those expensive meals are sketchy at best.
Considering such astonishing profligacy and similarly lavish spending detailed in recent stories about the League, we applaud Luallen's decision to conduct thorough audits of the two agencies.
But that 1993 audit of KACo stands as testament to the reality that shining the light on wasteful practices briefly before letting them recede into the darkness for several years accomplishes very little.
KACo obviously did not learn from its own experience. And the League, if it was even paying attention to the review of a kindred organization, didn't get the message either.
So, as comprehensive as we expect them to be, the audits conducted by Luallen's office must not be the total extent of official reaction to the failure of these agencies to demonstrate even modest fiscal responsibility in the handling of the public money that provides the bulk of their funding.
Kentucky's lawmakers need to step up on this issue as well — and not just by asking KACo and League officials to explain their behavior before a legislative committee, as state Sen. Damon Thayer has proposed.
Yes, these officials need to be grilled, and grilled hard, in a public setting. But they also need to be restrained in the future.
At a minimum, lawmakers ought to ensure that KACo and the League receive regular visits from the state auditor's staff.
They need not be annual visits, but they need to be frequent enough to keep the agencies' officials from slipping back into bad habits.
Another issue legislators ought to address is KACo's practice of offering insurance, paid for with public funds, that covers legal defense costs for county officials facing criminal charges.
That outrage cannot be considered good public policy by any stretch of the imagination.
Finally, lawmakers need to discuss the core failure that allowed the wastefulness to go unchecked at KACo and the League — the failure of the boards of those agencies to provide a level of oversight that could keep the spending of their executives in check.
Simply put, the board members of these agencies need more training in regard to their fiduciary responsibility.
Lawmakers should explore whether they can create a method for providing that training for board members of agencies, such as KACo and the League, that rely on tax dollars for a majority of their funding.
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posted by KYJurisDoctor at 10:19 PM
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