Press Release from Ed Hatchett, Release Date: May 9, 2000 Audit online at: http://www.auditor.ky.gov/Public/Audit_Reports/Archive/1998PerryFCaudit.pdf |
Commonwealth of Kentucky |
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(Frankfort - May 9, 2000)
Calling the financial records of the Perry County Fiscal Court "unauditable" for the fiscal year ending June 30, 1998, State Auditor Ed Hatchett has disclaimed an auditor's opinion on the County's records.
In a letter to Governor Paul Patton and the Perry County Fiscal Court, Hatchett refused to express an opinion on the financial statements of the county, citing (1) auditors' inability to rely on the representations made by former County Judge/Executive Sherman Neace, who was indicted on federal charges, (2) incompleteness and inaccuracy of the financial statements resulting from serious weaknesses in internal controls, and (3) auditors' inability to obtain management representations from the County required by generally accepted auditing standards. Hatchett's report detailed 28 Comments and Recommendations critical of the County's records and fiscal management. Some of the more egregious practices noted were the deficit of more than $700,000 in the general fund and the excess of expenditures over receipts of more than $800,000. "The situation is deplorable," said Hatchett. "This is the first time in at least 25 years our auditors have been unable to express an opinion because of the state of the financial records and management of a county." This report is posted on the internet at the following site: www.auditor.ky.gov |
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