Press Release from Ed Hatchett, Release Date: April
18, 2000 |
Commonwealth of Kentucky |
| (Frankfort - Apr.
18, 2000) State Auditor Ed Hatchett
said today that the Kentucky Department of Education had violated the Commonwealth’s
purchasing laws when it made a $300,000 payment to The National Faculty for teacher
training. "The payments were routed through five educational co-operatives and one
school district, and there was no written contract with TNF," said Hatchett.
"This placed the transaction outside the customary scrutiny of the Finance and
Administration Cabinet, the Legislative Research Commission, and the Auditor of Public
Accounts." Hatchett went on to say in this second interim report that KDE used its relationship with various school co-operatives and districts to circumvent the state lapse statute. "We identified over $2.9 million in the last three years transferred to school districts and co-operatives to hold until KDE sent them instructions," said Hatchett. "This is money that should have been returned to the General Fund under the provisions of KRS 45.229." Hatchett also cautioned KDE regarding the structure of the newly-created internal audit function. He noted that the position should both conform to the guidelines and Statement of Internal Auditing Standards established by The Institute of Internal Auditors and report directly, often, and comprehensively to the Kentucky Board of Education. This interim report is posted on the internet at the following site: www.auditor.ky.gov |
|
Edward B. Hatchett Jr. |
|