KACo Audits Reveal Mismanagement

Frankfort, KY – An examination of the Kentucky Association of Counties' finances has found a culture of extravagant spending. State Auditor Crit Luallen says, between 2006 and 2009, the KACo board, management and staff made more than three million dollars in questionable expenditures. The 382-page report by Luallen's office makes 150 recommendations for improvement, many of which have already been instituted.

"The KACo board has taken numerous steps recently, as a result of public scrutiny and media reports, to begin to achieve greater accountability. And in their response to this exam, which is included in the document, the KACo board indicates a commitment toward moving forward with reforms."

Luallen says the audit found no criminal wrongdoing, but some matters are being referred to the Internal Revenue Service. The former director of KACo, Bob Arnold, resigned last month.