Ryan Alessi: "KACo (Kentucky Association Of Counties) Was Corrected Before".
KACo was corrected before
Issues at KACo similar to problems exposed 15 years ago
By Ryan Alessi
In a three-month span 15 years ago, both the state auditor and a legislative investigations panel published scathing reports pointing out "loose control" at the Kentucky Association of Counties and offering a host of recommendations to fix it.
The probes revealed unchecked spending, "a severe lack of documented policies and procedures" and an insurance program for the counties that had big financial problems.
KACo — which offers services such as lobbying, insurance coverage, financing for projects and training to Kentucky's 120 counties — made changes after the scrutiny, particularly to prevent the collapse of its insurance fund.
But, in areas of expenses and travel costs, history appears to be repeating itself.
"There seems to be some similar situations that are going on now: lack of proper oversight and excessive expenditures," said Jack Coleman, the former Democratic state representative who co-chaired the legislature's Committee for Program Review and Investigations that looked into KACo in 1994.
"It seems like it's so similar to what we dealt with in the 1990s," he said.
A Herald-Leader report last week revealed that the five top KACo officials spent nearly $600,000 in two years on travel, meals and other expenses. In many instances, they paid for hotel rooms with rates of more than $450 per night, expensive dinners and sports tickets for county officials who serve on the boards charged with overseeing KACo's operations.
State Auditor Crit Luallen announced Wednesday that her office would launch a review of KACo, as well as of the Lexington-based Kentucky League of Cities, which provides similar services.
KACo's executive committee, made up of five officers who are elected county officials, will discuss this week whether or not to fight the audit, although President J. Michael Foster — the Christian County Attorney — has said he would welcome the scrutiny.
Foster served as a KACo board member during the mid-1990s and returned several years ago before being elected president in November. He said the scope of problems KACo faces now differs from the issues that came to light 15 years ago, especially regarding the financial health of the insurance and financial services.
"We have basically a sound organization," he said. "On the other hand, I think that the recent articles raised the challenges that we face, which is basically management of travel expenses and proper oversight of our finances."
Expense oversight
KACo, through its executive director at the time, requested then-state auditor Ben Chandler to perform a management audit in 1993 after questions were raised about a lack of checks and balances that might put the counties' money at risk.
In addition to paying annual KACo dues, which range from $400 to $9,000 depending on population, county governments spend taxpayer money to buy liability, property, workers' compensation and unemployment insurance and to finance items such as fire trucks and courthouses through KACo.
Chandler's office released a 240-page report on Nov. 8, 1993, that raised concerns about how KACo's programs were being managed and how funds were being spent without proper oversight.
"Our recommendations include establishment of written policies regarding travel and entertainment expenses, board expenses, use of credit cards, documentation of business expenses, prohibiting personal use of credit cards and requiring adequate documentation for expenses incurred and reimbursed by the funds," the audit said.
Among the findings were that the top seven KACo staff members spent $19,894 on travel and entertainment in 1992.
The Herald-Leader's review found that the top five KACo officials in 2007 and 2008 spent $305,000 in travel and hotel costs, more than $195,000 in meals and nearly $17,000 in sports tickets, golf and entertainment.
As was the case in 1992, current KACo officials failed to provide receipts for many of the expenses, even though that was among the recommendations in Chandler's audit and is required according to KACo's employee handbook as of July 2005.
Issues at KACo similar to problems exposed 15 years ago
By Ryan Alessi
In a three-month span 15 years ago, both the state auditor and a legislative investigations panel published scathing reports pointing out "loose control" at the Kentucky Association of Counties and offering a host of recommendations to fix it.
The probes revealed unchecked spending, "a severe lack of documented policies and procedures" and an insurance program for the counties that had big financial problems.
KACo — which offers services such as lobbying, insurance coverage, financing for projects and training to Kentucky's 120 counties — made changes after the scrutiny, particularly to prevent the collapse of its insurance fund.
But, in areas of expenses and travel costs, history appears to be repeating itself.
"There seems to be some similar situations that are going on now: lack of proper oversight and excessive expenditures," said Jack Coleman, the former Democratic state representative who co-chaired the legislature's Committee for Program Review and Investigations that looked into KACo in 1994.
"It seems like it's so similar to what we dealt with in the 1990s," he said.
A Herald-Leader report last week revealed that the five top KACo officials spent nearly $600,000 in two years on travel, meals and other expenses. In many instances, they paid for hotel rooms with rates of more than $450 per night, expensive dinners and sports tickets for county officials who serve on the boards charged with overseeing KACo's operations.
State Auditor Crit Luallen announced Wednesday that her office would launch a review of KACo, as well as of the Lexington-based Kentucky League of Cities, which provides similar services.
KACo's executive committee, made up of five officers who are elected county officials, will discuss this week whether or not to fight the audit, although President J. Michael Foster — the Christian County Attorney — has said he would welcome the scrutiny.
Foster served as a KACo board member during the mid-1990s and returned several years ago before being elected president in November. He said the scope of problems KACo faces now differs from the issues that came to light 15 years ago, especially regarding the financial health of the insurance and financial services.
"We have basically a sound organization," he said. "On the other hand, I think that the recent articles raised the challenges that we face, which is basically management of travel expenses and proper oversight of our finances."
Expense oversight
KACo, through its executive director at the time, requested then-state auditor Ben Chandler to perform a management audit in 1993 after questions were raised about a lack of checks and balances that might put the counties' money at risk.
In addition to paying annual KACo dues, which range from $400 to $9,000 depending on population, county governments spend taxpayer money to buy liability, property, workers' compensation and unemployment insurance and to finance items such as fire trucks and courthouses through KACo.
Chandler's office released a 240-page report on Nov. 8, 1993, that raised concerns about how KACo's programs were being managed and how funds were being spent without proper oversight.
"Our recommendations include establishment of written policies regarding travel and entertainment expenses, board expenses, use of credit cards, documentation of business expenses, prohibiting personal use of credit cards and requiring adequate documentation for expenses incurred and reimbursed by the funds," the audit said.
Among the findings were that the top seven KACo staff members spent $19,894 on travel and entertainment in 1992.
The Herald-Leader's review found that the top five KACo officials in 2007 and 2008 spent $305,000 in travel and hotel costs, more than $195,000 in meals and nearly $17,000 in sports tickets, golf and entertainment.
As was the case in 1992, current KACo officials failed to provide receipts for many of the expenses, even though that was among the recommendations in Chandler's audit and is required according to KACo's employee handbook as of July 2005.
Labels: General information
posted by KYJurisDoctor at 9:24 PM
0 Comments:
Post a Comment
<< Home