Press Release from Ed Hatchett,
Kentucky Auditor of Public Accounts

Subject: Lax Controls Continue at Education Cooperative
Release Date: June 29, 2001
Audit online at: http://www.auditor.ky.gov/Public/Audit_Reports/Archive/2000KYEduDevCorpaudit.pdf

Commonwealth of Kentucky
Auditor of Public Accounts
144 Capitol Annex
Frankfort, KY 40601

Contact:
Harold McKinney
Legal Counsel
Phone 502-573-0050
FAX 502-573-0067
APA.PressReleases@auditor.ky.gov
(Frankfort - June 29, 2001) An education cooperative plagued by scandal in 1999 had continuing operating and financial weaknesses during 2000. An audit of the Kentucky Educational Development Corporation (KEDC) found 13 deficiencies, three of which were repeated from the 1999 audit. The audit, performed by Michelle Carpenter, CPA, in conjunction with the Auditor of Public Accounts, was released today.

Among the findings were

  • Personal expenses charged to credit cards
  • Work invoices issued early to increase employee bonuses
  • Preferential membership rates offered some school districts
  • Imposition of arbitrary, inconsistent markups and handling fees
  • Purchasing practices nullified procurement controls
  • Travel policies obscured local spending
 

Edward B. Hatchett Jr.
Auditor of Public Accounts
144 Capitol Annex
Frankfort, KY 40601
WEB: www.auditor.ky.gov/