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Hatchett Calls for Clarification of Purpose and Funding for See the audit report for Full Details |
Edward B. Hatchett,
Jr. |
| (Frankfort - January 22, 2003) Dramatic increases in receipts for the Kentucky Racing Health and Welfare Fund, along with its Board’s expanded investments, have prompted State Auditor Ed Hatchett to call for the General Assembly and the Kentucky Racing Commission to clarify the fund’s benevolent mission and to review its funding mandates to assure the fullest protection of state revenues.
The purpose of the fund, established in 1978, was to use proceeds from un-cashed pari-mutuel tickets to benefit thoroughbred racing personnel demonstrating a need for financial assistance. However, the legislation preceded off-track betting and simulcast wagering. From their inception, receipts rose from a modest $500 thousand per year to $2.8 million for the past two years. Hatchett’s examination recommends that the General Assembly and Racing Commission clarify the original mission of the fund and review its investment policies in light of the expanded revenue. Attracting particular scrutiny is the loss of over 40% of the Fund’s investment in equities and its purchase and renovation of a retirement home wherein its investment may exceed the property’s value. “This is part of a pattern of General Assembly-established, quasi-government entities,” Hatchett said. “They remain in a gray area of public scrutiny and oversight. I’m concerned, as always, about prudent and appropriate use of public funds.” Hatchett’s audit recommends that:
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