Press Release from Ed Hatchett,
Kentucky Auditor of Public Accounts

Release Date: June 2, 2000
Subject: Audit Reveals Weaknesses in State’s Management of Capital Construction Projects
Online at: http://www.auditor.ky.gov/

Commonwealth of Kentucky
Auditor of Public Accounts
144 Capitol Annex
Frankfort, KY 40601

Contact:
Harold McKinney
Legal Counsel
Phone 502-573-0050
FAX 502-573-0067
APA.PressReleases@auditor.ky.gov
(Frankfort - June 2, 2000) State Auditor Ed Hatchett has revealed numerous weaknesses in Kentucky’s management of funds expended on capital construction projects. During the last two years Kentucky has spent $612 million on such projects.

The recently released Statewide Single Audit of Kentucky (SSWAK), for fiscal year ended June 30, 1999, contains 14 findings of deficiencies in the area of capital construction. Among the findings are:

  • Defects in bid requirements on projects
  • Inadequately documented justifications for project change orders
  • Noncompliance with EEO requirements
  • Failure to designate set-asides in projects for small or small minority businesses
  • Insufficient documentation to support project expenditures
  • Incomplete insurance coverage for projects
  • Lapses in internal controls governing project monitoring and management
  • Weaknesses in monitoring for duplicate payments

"Kentuckians have made a large investment in infrastructure and capital expenditures, and we expect these projects to be executed efficiently and effectively," said Hatchett. "That means state government must demonstrate greater diligence in its management."

 

Edward B. Hatchett Jr.
Auditor of Public Accounts
144 Capitol Annex
Frankfort, KY 40601
WEB: www.auditor.ky.gov/