The second half of the state government audit has been released by Adam Edelen. (The first half of the audit may be reviewed here.)
27 findings with recommendations and notes of more than $411,000 in questioned costs. Last year’s audit of federal grants had 21 findings and similar material weaknesses, unsurprisingly.
“Kentucky has a responsibility to adequately oversee the expenditure of federal dollars directed at the Commonwealth,” Auditor Adam Edelen said. “The failure to do so jeopardizes the continued availability of much-needed resources in the state and increases the risk for waste and abuse of taxpayers’ money.”
Two of the biggest issues raised are material weaknesses in the internal control over compliance. Federal chemical stockpile emergency funds handled by the Department of Military Affairs is one mess. The other? Lapses in controls by the Department of Agriculture with how it monitors food banks and food pantries.
There were also nine significant deficiencies in the Cabinet for Health and Family Services (shocker). Primarily the oversight of Medicaid Services contracts, a six billion dollar program. Everything from insufficiently monitoring drug rebates to essentially ignoring timely cost reports.
You’ll likely want to explore the entire 124-page audit:
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Also lots of problems with the Department of Education and the Transportation Cabinet.