Auditor Of Public Accounts
State Auditor Crit Luallen Releases Statewide Single Audit of Kentucky
Crit Luallen, Kentucky’s Auditor of Public Accounts, released the Statewide Single Audit of Kentucky for Fiscal Year ending June 30, 2006. 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 comply 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 69 reportable findings, a decrease of 3 findings from the prior year. Reportable conditions are significant deficiencies in the design or operation of internal controls. Forty-four of the findings related to financial statement weaknesses in internal control and / or compliance; 25 related to federal program weaknesses in internal control and/or compliance.
Findings and recommendations of note include Health and Family Services contracting with Artemetrx in which $1 million dollars was paid before the contract was fulfilled (page 56), the Finance and Administration Cabinet failing to ensure that an exclusive contract with Pepsi was complied with (119), the Kentucky Retirement System circumventing internal controls and procedures in an Alternative Investment made by the Insurance Fund (143), the Department of Revenue failing to protect Cigarette Tax Stamps (167), questioning over $178,000 in costs at the Meade County Attorney’s Child Support Enforcement Program because no financial records were available to audit (204), and the questioning of over $75,000 in New West branding contract expenses billed to federal accounts (207).
“This 297 page document is a blueprint to improve the way the Government of Kentucky does business. It is very important that Kentucky has an independent watch dog guarding the taxpayer’s interests in order to assure that Kentucky’s money is being spent as efficiently and effectively as possible,” Ms. Luallen said.
The audit noted $1,485,450 in questioned costs, of which $1,338,243 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 $39.12 billion in expenditures of which $7.36 billion was federal funds. The audit was performed in accordance with Government Auditing Standards. Work began on SSWAK in May 2006. This report is the product of 43 auditors and over 37,000 hours of work.
The following auditors were involved in the Statewide Single Audit of Kentucky: Kenny Blackwell, Veronica Bradley, Alicia Boyd, Kathy Canon, Libby Carlin, Jim Carpenter, Philip Christian, Tom Crouch, John Cubine, Charlene Daniels, William DeRossett, Justin Ebert, Sarah Feltus, Amy Fisher, Kelly Glines, Gregory Giesler, Brian Gordon, Nanda Gupta, Jennifer Harper, Mary Hudson, Catherine Hunt, Tony Hutchins, Jason Johnson, Candy Kalisz, Brent King, Liz Lowe, Jenny Luscher, Brian Lykins, Teri Pennington, David Pitts, Robert Poynter, Lori Riddle, Sandra Rudic, Linda Sagraves, Gina Shall, Jeremy Shannon, Amy Small, Mary Snedegar, Brenda Starr, John Stout, Ross Vanoli, Cindy Watts, and LeMarc Williamson.
The Statewide Single Audit of Kentucky, with a four page executive summary and details about each finding and recommendation, is posted on the Internet at the following site: www.auditor.ky.gov