Press Release from Ed Hatchett, Release Date: February 12, 2001 Audit online at: http://www.auditor.ky.gov/Public/Audit_Reports/Archive/2000WKECaudit.pdf |
Commonwealth of Kentucky |
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(Frankfort - February 12, 2001)
State Auditor Ed Hatchett today released the first education co-op audit performed under a law which became effective last July giving his office oversight of such audits. The release comes one year after an embezzlement involving an eastern Kentucky education co-op came to light.
First under law strengthening co-op oversight The West Kentucky Educational Co-operative failed to receive a clean audit opinion from Howe & Melton, CPAs. “Several factors contributed to the Co-op’s qualified opinion,” said Hatchett. “The Co-op did not properly account for fixed assets and its internal controls were deficient. Auditors questioned $11 thousand in expenses paid by the co-op, some for personal items charged to credit cards, and some of which lacked proper documentation. In addition, migrant education program funds were expended for unallowed purposes. “ The West Kentucky Educational Co-operative audit is the first to be released of nine school co-op audits performed under a bill Sponsored by Representative Harry Moberly passed during the 2000 General Assembly. Hatchett said the law “is working just as it was intended, to bring better accountability to co-ops by making the State Auditor overseer of the audits, while permitting the use of private CPAs to perform the auditing procedures.” |
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