Auditor Of Public Accounts
State Auditor Crit Luallen Releases Statewide Single Audit of Kentucky
Crit Luallen, Kentucky’s Auditor of Public Accounts, today released the Statewide Single Audit of Kentucky for Fiscal Year ending June 30, 2005. The United States Congress, in the Single Audit Act of 1984, and subsequent amendments, authorizes this audit, known by its acronym SSWAK. The act requires that states audit financial statements and their compliance with internal controls applicable to federal funds received by the Commonwealth. The auditor’s office issued an unqualified opinion regarding the compliance of all federal programs audited.
The audit contained 72 reportable findings, an increase of 23 findings from the prior year. Reportable conditions are significant deficiencies in the design or operation of internal controls. Forty of the findings related to financial statement weaknesses in internal control and / or compliance; 32 related to federal program weaknesses in internal control and/or compliance. Of the reportable findings, the audit considered three of them to be material weaknesses. Material weaknesses are reportable conditions that may increase the risk of error or misstatement by a material amount.
Findings and recommendations of note include the need for the Kentucky Office of Homeland Security to develop and implement procedures for documenting the evaluation of grant applications, questioning of over $550,000 in Transportation Department costs on a project in Whitley County because of ongoing federal investigations, a failure to document a potential conflict of interest in awarding a contract to First Health Services by the Department of Medicaid Services and the Finance and Administration Cabinet, and the supplanting of federal funds by the Justice Cabinet’s Office of Drug Control Policy.
“This 309 page document is a blueprint to improve the way the Government of Kentucky does business. It is very important that an independent watch dog for the taxpayer’s money exist in order to assure that Kentucky’s money is being spent as efficiently and effectively as possible,” Ms. Luallen said.
The audit noted $2,183,211 in questioned costs, of which $1,602,453 was noted in the current fiscal year. Questioned costs are expenditures made on behalf of the federal program that are not allowable expenditures based on various criteria established by the Office of Management and Budget and various laws and regulations. These costs are subject to reimbursement to the federal government.
The Statewide Single Audit of Kentucky is one of the Office of Auditor of Public Accounts’ annual statutory mandates, and is submitted to the federal government. The total audit expressed an opinion on over $20.4 billion in state expenditures of which $6.9 billion is federal funds. The audit was performed in accordance with Government Auditing Standards. Work began on SSWAK in May 2005. This report is the product of 47 auditors and over 35,000 hours of work.
The following auditors were involved in the Statewide Single Audit of Kentucky: Kenny Blackwell, Amy Bishop, Veronica Bradley, Alicia Boyd, Kathy Canon, Libby Carlin, Tim Carpenter, Philip Christian, Tom Crouch, John Cubine, Jennifer Curtis, Charlene Daniels, William DeRossett, Farrah Duvall, Amy Fisher, Kelly Glines, Gregory Giesler, Nanda Gupta, Jennifer Harper, Mary Hudson, Catherine Hunt, Tony Hutchins, Jason Johnson, Candy Kalisz, Brent King, Liz Lowe, Shih – Han Lu, Jenny Luscher, Brian Lykins, Scott McKenzie, Pete Patel, David Pitts, Robert Poynter, Lori Riddle, Sandra Rudic, Linda Sagraves, Gina Shall, Tamara Shepherd, Amy Small, Brenda Starr, John Stout, Mei-Lin Su, Michelle Sutton, Melanie Verdi, Scott Vogt, LeMarc Williamson, Alice Wilson, and Valerie Young.