Press Release from Ed Hatchett, Release Date: February
28, 2000 |
Commonwealth of Kentucky |
| (Frankfort - Feb.
28, 2000) State Auditor Ed Hatchett says that as many as
197 current and former state Education Department employees whose salaries were paid since
1991 by the Ohio Valley Educational Cooperative did not pay local occupational license
fees. A preliminary estimate of the amount of fees, penalties, and interest owed to the
City of Frankfort by those employees whose workstations were within the city is $341,647. "The issue of accountability grows as our auditors take a closer look at school co-ops," said Hatchett. "In addition to a favored status enjoyed by KDE's OVEC employees in their salary levels as compared to other public employees, it appears that they also were insulated from local occupational license fees." Hatchett also reported to Interim Commissioner Kevin Noland his auditors' conclusion that KDE parked almost $170 thousand in OVEC at fiscal year end 1997 in violation of the Commonwealth's lapse statute, KRS 45.229. Thirty-two months after the parking transaction, almost $105 thousand remains at OVEC, following one $60,000 payment directed by KDE for teacher training services in April 1999, and the deduction of almost $5 thousand as an administrative fee by OVEC. "As we continue our work, it becomes apparent that KDE's relationship with co-operatives circumvented laws and proper practices." |
|
Edward B. Hatchett Jr. |
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