Auditor Of Public Accounts
2009 Local Education Audits (CPE)

Press Release Date:  Friday, August 07, 2009  
Contact Information:  Contact: Communications Director
Phone: (502) 573-0050
Fax: (502) 573-0067Email:

FRANKFORT, KY (8-7-09) State Auditor Crit Luallen today released a series of performance audits on 29 adult education programs funded by the Council on Postsecondary Education (CPE) with grants totaling $5.7 million in the 2008 fiscal year.


This is the fifth consecutive year that Luallen's Office was requested by CPE to audit its adult education grant recipients across the Commonwealth. Each year, CPE selects nearly 25 percent of its programs to be audited. The programs are selected on a rotating basis. CPE began appropriating funds for these audits in 2000. 


“The overall management and administration of the CPE grants by the local adult education programs seems to be in good standing based on our audits,” Luallen said.


Auditors examined 29 adult education programs within the 28 counties selected by CPE. These counties provided adult education services to 6,880 students in fiscal year 2008.


The counties include: Allen, Anderson, Ballard, Boone, Bourbon, Boyd, Calloway, Carlisle, Carter, Crittenden, Elliott, Fleming, Fulton, Graves, Greenup, Hickman, Jackson, Johnson, which had two providers, Lincoln, Livingston, Lyon, Martin, Menifee, Mercer, Rockcastle, Union, Warren and Webster. To view the individual program audits and a summary of all the audits, visit


Of the 29 programs audited, auditors found that eight programs had no reportable exceptions. These include: Bourbon, Carlisle, Crittenden, Greenup, Hickman, Johnson County (Carl D. Perkins Vocational Training Center), Livingston and Martin counties.  


In the other 21 programs, auditors identified audit exceptions ranging from a lack of student attendance documentation to a failure to keep accurate inventory records.  For each exception, auditors made recommendations on how the local providers could improve their administrative oversight.


To determine the significance and frequency of the audit exceptions, auditors compiled a summary of the exceptions, which was sent to CPE along with recommendations to CPE on ways to strengthen its administrative support to local adult education programs. 


One recommendation includes ensuring that all program requirements are located within the Kentucky Adult Education Policy and Procedure Manual to provide guidance to the local providers in one location.


Another recommendation suggests that CPE should request that all adult education providers submit a final report from their accounting system to show support of their final KYAE-10 Expenditure Reports. The report should be reconciled to the final expenditure reports and reviewed for encumbered expenditures or other accounting errors.


“This review could also be used as a basis for choosing specific programs that may require further investigation,” according to the audit.


In 2008, CPE awarded $28 million in all 120 counties to adult education programs administered by school systems, community and technical colleges, community-based organizations, educational cooperatives, universities and local governments.


In 2000, CPE was given the role of funding and monitoring Kentucky’s adult education programs as part of the Kentucky Adult Education Act passed by lawmakers. The 2000 initiative increased funding for adult education to improve the educational status of adult Kentuckians who lack a high school diploma, function at low levels of literacy or want to learn English.