State Auditor Crit Luallen released a briefing report on the Kentucky Department of Charitable Gaming, which regulates the state's second largest gaming industry.

In 2007, charitable gaming had $489 million in gross receipts, making it second to the Lottery, which brought in $744 million, and just ahead of horseracing, which produced $470 million.

State Auditor Crit Luallen's Office today released an audit of the Capital City Airport Division - calling for stronger policies and a more efficient organizational structure relating to Kentucky's aircraft.

The audit, which makes recommendations on 10 findings, found no formal process for setting usage rates, a failure to request or check passenger identification, a broad definition of who can fly on a state aircraft, the inability to control the use of air charter flights by state agencies and a decentralized air fleet.

State Auditor Crit Luallen released the final two audits of the Knox County Fiscal Court for fiscal years 2006 and 2007, which cover the administration of former Knox County Judge-Executive Raymond Smith.

Smith, who is scheduled for sentencing on Tuesday, pleaded guilty to federal mail fraud on March 3, 2008. The charges stem from 2003-2005 audit findings that Luallen's office referred to the FBI and other law enforcement agencies.

State Auditor Crit Luallen released an examination of a $5 million agriculture grant that found lax oversight and questionable results.

The Governor's Office of Agricultural Policy (GOAP) and its governing board awarded the grant to a vendor charged with assisting Kentucky farmers over the last three years.

State Auditor Crit Luallen released a series of performance audits on 31 adult education programs funded by the Council on Postsecondary Education (CPE) with grants totaling $11.6 million in the 2007 fiscal year.

State Auditor Crit Luallen released an audit of the financial records of Kenlake State Resort Park, which documents the theft of almost $75,000 by a Kenlake employee over more than a two-year period.

State Auditor Crit Luallen today released former Perry County Sheriff Dennis Pat Wooton's 2005 and 2006 tax settlement audits, which led auditors to discover $573,025 in missing funds dating back to the 2002 tax settlement account of the previous sheriff.

State Auditor Crit Luallen today released the fiscal year 2006-2007 Title VI compliance audit of state government agencies that receive federal funds and must comply with state law by submitting Title VI reports and implementation plan updates to the Auditor's Office and the Human Rights Commission by July 1 of each year.

A report issued today by the Office of State Auditor Crit Luallen says the state does not properly manage the personal, medical and financial needs of its wards and suggests 43 recommendations to improve Kentucky's guardianship program that is housed in the Cabinet for Health and Family Services.

Recent media coverage leading up to Kentucky's presidential primary repeatedly focused on the state's lack of educational attainment in analyzing how voters were expected to cast their ballots. Whether or not we agree with the conclusions drawn by political commentators, the extensive national coverage drove the point home that we are a chronically undereducated state, reinforcing an image that has historically hampered our economic progress.

The reconciliations performed of city financial activity identified specific discrepancies throughout the period under examination. Ultimately, approximately $21,100 of city funds documented on receipt tickets were not deposited in city bank accounts. The amount of the $21,100 discrepancy was identified as a result of examining documentation the city provided to this office. The discrepancy amount could change should the city determine that additional financial records exist. (See attached letter for more details.)

A report issued today by the Office of State Auditor Crit Luallen says the Kentucky Department of Parks is seeing its net losses growing in spite of hundreds of millions of dollars invested in capital improvements in recent years.

Kentucky Auditor Crit Luallen has released the second volume of the annual statewide audit of the Commonwealth of Kentucky for fiscal year ending June 30, 2007, finding that the state did not comply with federal requirements regarding two programs - the Highway Planning and Construction program and the Highway Safety program.

Through a special examination, the Office of Kentucky Auditor Crit Luallen found that over a 13-month period (January 2007-January 2008) a Kentucky State Reformatory work computer at Kentucky Correctional Industries (KCI) was used in an apparent theft of $6,877 that benefited 21 inmates.

The auditor's office discovered the apparent theft after working with the Kentucky Department of Corrections to examine the agency's inmate payroll processing system. The investigation originated after an anonymous caller used the auditor's public hotline to question KCI inmate labor reimbursements.

Kentucky Auditor Crit Luallen spoke to the Kentucky Magistrates and Commissioners Association during its spring conference, stressing the need for awareness of specific audit findings her office has encountered in recent local government audits.

"As magistrates and commissioners, many times, you may not be aware of problem areas in your counties until we complete your audit," she said. "So you need to understand how these problems arise, what can happen as a result and how you as local officials can help prevent similar problems in your communities."

Kentucky Auditor of Public Accounts Crit Luallen has released the first part of the annual statewide audit of the Commonwealth of Kentucky for fiscal year ending June 30, 2007. The audit contains 75 findings that indicate significant deficiencies in the design or operation of internal controls throughout state government. The second part of the audit, to be released in March, focuses on the state's oversight of federal funds.

Kentucky Auditor Crit Luallen spoke to the County Judge/Executive Association winter conference, stressing the need for a strong auditor and a focus on cost-saving initiatives, especially with county jails, during tough financial times.

State Auditor Crit Luallen was sworn in for her second term as Kentucky State Auditor on January 7th, 2008 by former Chief Justice John Palmore. Auditor Luallen pledges to continue to advance the role of the Auditor's Office as the guardian of the taxpayer's trust with the competence and integrity that marked her first term.

Bob McBeath will serve as General Counsel, replacing Ellen Hesen who moved to the Governor's Office to serve as General Counsel there. McBeath is an eleven-year veteran of the Auditor's Office, having served previously as General Counsel and more recently as legal counsel. McBeath is a resident of Oldham County whose prior experience includes private law practice and serving as Supreme Court Administrator for eight years.

Terry Sebastian, of Louisville, will serve as Director of Communications. Sebastian has eleven years of previous experience in state government, including serving as Deputy Press Secretary in the Governor's Office, Press Secretary for the Justice Cabinet, and as a Public Information Officer for the Legislative Research Commission. Most recently, he has served as Alumni and Public Relations Coordinator for Louisville Collegiate School. Sebastian, who will begin his duties January 28, replaces Jeff Derouen who has been named Chief of Staff and Director of Communications for Lt. Governor Daniel Mongiardo.

State Auditor Crit Luallen released a performance audit of reporting practices and expenditures in Kentucky's Medicaid program. Although program changes have been made, advertised savings of $120 million a year cannot be substantiated because of inconsistent and confusing reporting practices. The audit, which includes eleven specific recommendations to improve future reporting, will be sent to legislators and the Beshear administration in preparation for the coming legislative session.

The Kentucky State Auditor's Office received the highest possible opinion during its recently completed peer review. The favorable opinion was transmitted to the Auditor's Office in an October 29 letter. The peer review is mandated by Government Auditing Standards created by the Comptroller General of the United States through the General Accounting Office. The review occurs once every three years.

State Auditors completed a report on the Kentucky Department of Education's attendance audit process. The report makes 18 recommendations to improve the process for auditing districts' attendance. The report found that the Kentucky Department of Education does not have a system in place to evaluate the accuracy of school district attendance data.

State Auditor Crit Luallen released a report detailing the doubling of costs on the construction of a new high school in Harlan County. The report also offers specific recommendations to bring stronger oversight and accountability to the school construction process. The school, under construction to consolidate Harlan County's three public high schools, was originally projected to cost $23 million. The current cost is estimated to be between $48 and $53 million.

State Auditor Crit Luallen completed a performance audit of Kentucky's High-Tech Construction Pool and High-Tech Investment Pool. Both funds are administered by the Department of Commercialization and Innovation within the Cabinet for Economic Development. The audit found that overall the staff and director of the Department of Commercialization and Innovations are funding quality projects and making investments as intended by law. However, the agency needs to provide greater transparency and accountability.

State Auditor Crit Luallen released a performance audit of Kentucky's new statewide lodging tax that became effective on June 1, 2005. The tax, which brought approximately $7.5 million to local, regional, and state coffers, was deposited into a restricted fund whose sole purpose was additional promotion of tourism throughout the Commonwealth.

To access a recently released county audit click here or on the picture. For audit search using a map click here.

State Auditor Crit Luallen released the 2006 Fiscal Year audit of Knott County Fiscal Court. The audit details 23 findings and questions expenditures totaling $13,440,532. The audit has been referred to the United States Attorney’s Office for the Eastern District of Kentucky, Federal Bureau of Investigation, Attorney General's Office, Kentucky State Police, Kentucky Transportation Cabinet, Knott County Attorney, Internal Revenue Service, Kentucky Department of Revenue, Kentucky Retirement System, United States Department of Labor, Kentucky Department of Labor, and Governor's Office for Local Development.

A special examination of the City of Fulton identified $23,062.52 in missing money. The discrepancy exists between the amount of money citizens tender for utility deposits and service fees, and the funds that were actually placed in the City Utility Revenue Account.

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.

Kentucky State Auditor Crit Luallen released a new review of state employees' use of the four hours leave time granted to them by Kentucky state government for the purpose of voting. The review, performed by the Auditor's Division of Information Technology and Special Examinations, determined the extent to which Commonwealth employees who took voting leave for the May 16, 2006 primary election and the November 7, 2006 general election actually voted.

During the fiscal year of the audit, expenses for the exposition center were $1,673,841. However, recurring revenues were $887,995 resulting in a shortfall of $785,846. The deficit was covered using interest earned on the funds the General Assembly appropriated for construction.

As the tenth anniversary of Kentucky's historic higher education reforms approaches, State Auditor Crit Luallen released a study that concludes rising tuition is impacting Kentucky's ability to meet the 2020 Postsecondary education goals set out by the General Assembly. A central goal of the 1997 act is to reach national averages for Kentuckians with degrees and to "significantly elevate the level of education of the adults of the Commonwealth." The report points out that, as in-state tuition has steadily increased, the full-time undergraduate enrollment of Kentucky residents in the postsecondary education system has begun to decrease.

Three reports on the Kentucky Horse Racing Authority released by State Auditor Crit Luallen show that the regulatory arm of Kentucky's signature industry needs stronger financial management and accountability. The 163-page document also showed that the Authority needs additional expertise and resources to meet its mandates. The reports include financial and management audits, mandated by the 2006 Kentucky General Assembly, and a review of the Kentucky Thoroughbred Development Fund requested by the agency.

State Auditor Crit Luallen released an audit of Kentucky's adoption process. The performance audit found that the time between when a child was classified as having a goal of adoption and actually being adopted was over 22 months. After the termination of parental rights, final adoption takes almost another year, even though 85% of the adoptions were by the children's foster parents. Children are staying in state custody an average of over three years.

State Auditor Crit Luallen today released a performance audit of Kentucky's method of privatizing government functions. The audit shows that Kentucky needs a process that will ensure stronger oversight and accountability of the Commonwealth's privatization contracting. The audit also found that Kentucky's main privatization statute is ineffective.

State Auditor Crit Luallen released an audit of Kentucky's dropout rate. The performance audit was conducted to determine whether Kentucky's dropout rate is valid and accurate. The audit discovered that districts couldn't accurately calculate the dropout rate using the current student information system.

The National State Auditor's Association (NSAA) announced yesterday that the Kentucky State Auditor's Office won a prestigious 2006 NSAA "Excellence in Accountability Award" in the "special projects" category. The award was given for the Kentucky Auditor's automated computer system vulnerability assessment process.

Auditor's Office releases the first ever comprehensive analysis of spending by each of Kentucky's 120 counties. County Jails accounted for total expenditures of $244 million in fiscal year 2005.

State Auditor Crit Luallen testified before the House Health and Welfare Committee about the Auditor's Office Report that documented a potential of over $70 million in savings for state government from the reimportation of pharmaceuticals. Drug reimportation is the term used to describe pharmaceuticals that are brought back into the United States at the lower cost they garner in other countries.

The Auditor's Office released results of a sophisticated computer analysis that reviewed over 5.7 million records from seven Cabinet for Health and Family Services program and uncovered approximately 20,000 records that warrant further investigation.

State Auditor Crit Luallen released a review of the Finance and Administration Cabinet's contract with Countryside Motors. The review of the $4.5 million annual contract uncovered no evidence that Finance violated its procurement policies.

State Auditor Crit Luallen released a performance audit of Kentucky's management of contracting for service workers and recommendations for improvement. The audit is the second of a three-part appraisal of the Commonwealth's contracting policies. The Auditor's Office found, as in the commodity purchases reviewed in the previous audit, the state is unable to determine the number of service workers under contract with state government.

In the first of a three part review of Kentucky's contracting practices the Auditor's Office notes several improvements that can be made in the way the Commonwealth purchases commodities and non - professional services. The report discovered the state could not determine the quantities purchased of any given item and that the state's "best value" policy can be improved by having the vendors add unit pricing.

Lt. Gov. Steve Pence requested the Auditor's Office to review Kentucky Correctional Industries after approximately 250 checks, cash, and unprocessed credit charges totaling over $377,000 were found in a manager's office. The examination revealed flawed business practices, lack of financial controls, and gross mismanagement of previous administrators.

$107 million in potential savings to the Commonwealth and its employees could be obtained if Kentucky were to join other states and municipalities and begin reimporting prescription drugs from Canada. Ms Luallen called on Governor Fletcher to request a waiver from the FDA in order to begin the process of obtaining these savings.