Press Release from Ed Hatchett,
Kentucky Auditor of Public Accounts

Subject: Hatchett Releases West Kentucky Educational Co-Operative Audit
Release Date: February 12, 2001
Audit online at: http://www.auditor.ky.gov/Public/Audit_Reports/Archive/2000WKECaudit.pdf

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

C
ontact:
Harold McKinney
Legal Counsel
Phone 502-573-0050
FAX 502-573-0067
APA.PressReleases@auditor.ky.gov

(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.”

 

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