State Auditor Crit Luallen Releases See the audit report for Full Details |
Crit Luallen |
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(Frankfort - April 27, 2004)
State Auditor Crit Luallen today released the audits of seven Kentucky Cooperatives for Educational Services for the fiscal year ended June 30, 2003. They are the Central Kentucky Education Cooperative; Kentucky Valley Educational Cooperative; Kentucky Educational Development Corporation; Ohio Valley Educational Cooperative; Northern Kentucky Cooperative for Educational Services, Inc.; Green River Regional Educational Cooperative, Inc.; and the Badgett Regional Cooperative for Educational Enhancement, Inc.
Most importantly, all the Educational Cooperatives received unqualified opinions, which means that the financial statements fairly represent the financial condition of these Cooperatives. Only two of the seven Cooperatives had reportable conditions. The Badgett Regional Cooperative had one reportable condition relating to their financial statements. This Cooperative, covering the Western Kentucky region including Henderson, Hopkins and McLean counties, should require the depository institution to pledge or provide sufficient collateral and enter into a written agreement to protect deposits. Kentucky law requires banks to provide sufficient collateral, in addition to the amount insured by the Federal Deposit Insurance Corporation, of greater or equal value of the public funds in the account. The audit recommends that the Badgett Regional Cooperative require the depository institution to do so. The Cooperative responded that because of the gradual transfer of funds between two banks, they were not aware when the funds exceeded the FDIC insurance level. They do at this time have written evidence of securities pledged which will cover the total of their accounts. The Central Kentucky Education Cooperative had two reportable conditions relating to their financial statements. The Cooperative, covering the Central Kentucky counties surrounding Frankfort, should require depository institutions to pledge sufficient collateral to protect deposits and should obtain a written security agreement with each of their banks. The Cooperative responded that they would comply. The Central Kentucky Education Cooperative should also require school districts to provide more detailed documentation when requesting payment for expenditures made on behalf of the IDEA program. The Cooperative responded that they would comply. The State Auditor is responsible for an annual audit of the funds contained in each cooperative. |
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