State Audit Reveals Questionable, But Not Illegal Spending At KACO

Frankfort, KY – For five years, beginning in 2003, revenues at the Kentucky Association of Counties rose 75-percent, boosting the annual budget to almost six million dollars. And from 2006 to 2009, more than three million dollars in questionable expenditures were made by the KACo board, management and staff. "On lavish dinners, alcohol, sports and entertainment tickets, staff birthday meals and extravagant Christmas parties."

State Auditor Crit Luallen says the exam also found weak internal controls, minimal ethics policies and no whistleblower policy, but no criminal wrongdoing. The 382-page report includes more than 150 recommendations for improvements, many of which have already been instituted. Former KACo director Bob Arnold resigned last month.