State Auditor to do Complete Audit of
Kentucky Correctional Industries



Crit Luallen
Auditor of Public Accounts
105 Sea Hero Road, Suite 2
Frankfort, KY 40601

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(Frankfort - May 7, 2004) Auditor of Public Accounts Crit Luallen's office will immediately begin the process of auditing Kentucky Correctional Industries. Department of Correction's Commissioner John Rees, in a formal request hand delivered late Thursday, asked Ms. Luallen's office to "scrutinize the financial integrity of [KCI], as well as to examine existing internal control mechanisms." In a press release late today, Lieutenant Governor Stephen Pence expanded upon the request, alleging that a Branch Manager at KCI "failed to process or deposit $480,000 worth of checks and other negotiable instruments." Ms. Luallen has already spoken to Commissioner Rees in order to begin the auditing process.

"The Office of the Auditor of Public Accounts stands ready and able to conduct a full financial audit of Kentucky Correctional Industries," Ms. Luallen said. "Like our ongoing audits of the Kentucky Racing Commission and the state's ProCard program, we will not only review specific past practices, but will be giving our advice on controls and procedures that will help Kentucky Correctional Industries operate better in the future. We are happy to work with the new administration to fulfill our duty in protecting taxpayer dollars."

 

Crit Luallen
Auditor of Public Accounts
105 Sea Hero Road, Suite 2
Frankfort, KY 40601
WEB:
www.auditor.ky.gov/