Press Release from Ed Hatchett,
Kentucky Auditor of Public Accounts

Subject: Penny Wise and Pound Foolish: Virtually No Internal Auditing in State Government
Release Date: October 3, 2001
Audit online at: http://www.auditor.ky.gov/Public/Audit_Reports/Archive/2001InternalAuditingKYGovt.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 - October 3, 2001) For every thousand dollars appropriated, state agencies spend only 7 cents for internal auditing. Annually Kentucky government spends more for incidental groceries, coffee, and bottled water than it does for internal auditing.

Internal auditing provides government managers with a continuous appraisal of agency operations and controls.

State Auditor Ed Hatchett has released a performance audit which found:

  • There is no statutory requirement for internal auditing
  • There are no consistent standards or procedures for internal auditing government wide.
  • In all of state government only 15 employees, in 5 of 14 cabinets, perform internal audits
  • Only 1 cabinet requires continuing professional training for internal auditors

"Our recommendations do not contemplate new appropriations," said Hatchett, noting that cabinets have ample financial incentive to reallocate existing resources.

 

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