Auditor Ball Identifies $2 Billion in Materially Misstated Funds and Makes Other Significant Findings in Statewide Single Audit


​​FRANKFORT, Ky. (March 20, 2024) – State Auditor Allison Ball released the first volume of the annual Statewide Single Audit of the Commonwealth of Kentucky (SSWAK) for Fiscal Year 2023. The audit highlights inaccurately accounted funds across state government as well as the inappropriate expenditure of taxpayer dollars.

There are nineteen findings included in the SSWAK Volume I for Fiscal Year 2023, including seven material weaknesses related to internal controls and twelve significant deficiencies. Three findings were repeat findings from previous SSWAK audit reports of which two are persistent findings that have yet to be resolved despite being notable findings on previous statewide audits.

“It is the job of public servants to earnestly protect the tax dollars entrusted to their care," Auditor Ball said. “This audit appropriately shines a light on billions of dollars of financial misstatements and the fact that some agencies have continually failed to comply with findings and recommendations noted year after year in the Statewide Single Audit. All state agencies should take these findings and recommendations very seriously."

Notable Findings from the SSWAK include:

  • KY Finance and Administration Cabinet: Misstated nearly $2 billion on the Commonwealth's financial statements; failed to adequately facilitate implementation of Governmental Accounting Standards Board (GASB) requirements across agencies despite having several years to integrate these updates; failed to adequately protect sensitive and confidential information (a recurring finding dating back to 2015 and 2020).
  • KY Office of Unemployment Insurance: Misstated accounts receivable balance and revenues by $70 million; misstated accounts payable balance and expenses by $232 million.   
  • Cabinet for Health and Family Services: Failed to implement appropriate segregation of duties, resulting in the possible embezzlement of $378,980 by an agency employee.
  • Kentucky Department of Education: Accepted incorrect attendance reporting into SEEK calculation totaling $195,608; incorrectly coded $23,140,731 of SEEK payments in the statewide accounting system.
  • Kentucky Horse Park: Failed to properly classify an indoor arena in the amount of $77,500; overstated capital assets and understatement of expenditures of $155,000.
  • Department of Parks: Inaccurately included accounts payable information in closing package and included assets valued at $97,589 not recorded in the state's accounting system.
  • School Facilities Construction Commission and Tourism, Arts, and Heritage Cabinet: Failed to classify $180,674,800 as passed through to subrecipients on the Schedule of Expenditures of Federal Awards (SEFA).

“I want to applaud the efforts of our state government auditing staff for their commitment and hard work on this year's Statewide Single Audit Volume I," Auditor Ball stated. “I remain committed to protecting taxpayer dollars from waste, fraud, and abuse to ensure good government practices are implemented across the Commonwealth."

The report can be found on our website.​ Volume II of the SSWAK, which covers Kentucky's reporting compliance for each major federal program and associated internal controls, will be released in the coming weeks.


The Auditor of Public Accounts ensures that public resources are protected, accurately valued, properly accounted for, and effectively employed to raise the quality of life of Kentuckians.

Call 1-800-KY-ALERT or visit our website to report suspected waste and abuse.