Press Release from Ed Hatchett, State should recoup $56,000 from Muhlenberg County Project Release Date: July 18, 2001Audit online at: http://www.auditor.ky.gov/Public/Audit_Reports/Archive/2001RailstoTrailsaudit.pdf |
Commonwealth of Kentucky |
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(Frankfort - July 18, 2001)
State Auditor Ed Hatchett today recommended that the Kentucky Transportation Cabinet recoup $56,000 it improperly paid Muhlenberg County in connection with the popular "Rails to Trails" project.
The repayment is due because the county purchased property for the project before entering into an agreement for state reimbursement and without first getting an appraisal. Both actions violated guidelines for the expenditure of federal highway monies, which were used by the state to reimburse Muhlenberg County. Hatchett recommended that the state revise the project to exclude the ineligible land and either secure a cash repayment or apply future eligible expenses against the reimbursement. The report also characterizes the county's expenditure of $637,000 for paving as "imprudent" because the county relied on a bid proposal and oral representations instead of signed contract. |
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