Press Release from Ed Hatchett,
Kentucky Auditor of Public Accounts

Subject: Hatchett Says Public Monies Funded Alcohol Purchases and Partying by City of Villa Hills
Release Date: December 28, 2000
Audit online at: http://www.auditor.ky.gov/Public/Audit_Reports/Archive/2000VillaHillsaudit.pdf Audit Report size 2mb.

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 - December 28, 2000) For five years the City of Villa Hills in Northern Kentucky used public funds to buy alcohol, stage Christmas parties, and pay for dinners with no documented public purpose according to a report issued by State Auditor Ed Hatchett today.

Final Special Examination Report questions over $44,000 in expenditures

The report includes copies of sales receipts documenting the purchase of cases of beer and snack foods with public funds. In one example, 236 alcoholic drinks were purchased and served during the 1996 City Christmas party held at the Gatehouse Tavern.

"This variety of inappropriate City spending and lax business practices insult taxpayers," said Hatchett. "The City of Villa Hills must ensure responsible spending and effective internal controls."

Other problems cited in the report are:

  • Excessive credit card limits authorized for City officials
  • City payments of late fees on outstanding credit card balances when the City had adequate funds to fully pay the bills
  • Failure to formalize travel procedures
  • Inappropriate checking account signature authority granted to Council members
  • Poor handling of petty cash
  • A long-standing credit balance maintained on a City credit card
 

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