Months and months ago the Commonwealth of Kentucky got word that mismanagement and corruption were afoot at the Kentucky Association of Counties. And whattya know? Turns out that’s just scratching the surface.

From 2003 to 2008, KACo’s revenue increased 75%, increasing its budget to more than $5.7 million. As the budget grew, so did spending. And not just on benefits. But on things like dinners, alcohol, sports tickets, adult entertainment and out-of-this-world holiday parties. More than $2 million was spent in a three-year period with $1.4 million having inadequate or no supporting documentation, an unclear business purpose or was excessive in nature.

State Auditor Crit Luallen is releasing an audit in just a moment that reveals a lack of board oversight allowed KACo to stray from its purpose of maximizing benefits to its member counties. A self-serving culture of corruption cost the organization more than $3 million. The audit makes 40 findings and details 150+ recommendations to improve board oversight and operations at KACo.

“Our examination provides the leadership of KACo the proper tools to continue to strengthen accountability and to fulfill its responsibilities to the counties and the taxpayers,” Luallen said. “I believe the public expects no less. In this current economic downturn, when our counties are struggling, our citizens have no patience for waste and excess from those who hold their trust and handle their tax dollars.”

Click here to read the rest of the juicy, juicy. Trust me – you won’t want to miss this hot, corrupt mess.