This morning State Auditor Adam Edelen is releasing the first half of the annual state government audit. In it, he offers 62 findings with recommendations.
Those 62 findings are related to deficiencies in internal controls of financial reporting, up from last year’s 53. This year’s audit also found eight material weaknesses that all relate to the Kentucky Humane Resource Information System, as he first told you last week. Seven other significant (a bit less major than “material weaknesses”) deficiencies were discovered relating to KHRIS.
Big problems involving:
- Reconciliation procedures to ensure payroll data is compiled accurately and complies with laws and regulations
- Training and information for human resources personnel
- Processes that could lead the system to incorrectly calculate and report deductions, inconsistently calculate pay rates and erroneously state information on pay stubs
- Security of sensitive data
“The findings in the audit related to KHRIS demonstrate the need for continued scrutiny and oversight by the Personnel Cabinet, which failed to perform necessary testing prior to the system’s launch,” Edelen said.
One of the major problems is something Todd Hollenbach has pretended isn’t an issue at all. During the audit process, the auditor’s office discovered that a state employee was incorrectly paid $10,284 due to a typo. A typo!
In addition to discovering that the Cabinet for Health and Family Services is still a disaster, here are several additional areas of concern:
- Treasury – Repeat finding about problems reconciling the state’s bank accounts. Auditors reported the reconciling problems existed during the year, although the finding recognizes Treasury was current in its reconciliations at the end of the fiscal year.
- Department of Military Affairs – Improperly incurred $20,760 in fees due to issues with paying invoices on time.
- Kentucky Horse Park – Improperly incurred $3,503 in fees due to late payments, as well as other concerns.
- Kentucky State Police – Concerns involving employee procedures for reporting sick, annual and compensatory time.
- Department of Corrections – Repeat concerns regarding the offender management system and computer security.
- Commonwealth Office of Technology – Issues regarding the tracking of assets, including an ATV that could not be observed by auditors because it was being stored at an employee’s residence.
- Department of Parks – Repeat concerns about timely payments to vendors.
So it looks like Little Todd didn’t do such a great job after all.
Some controversial highlights sure to be overlooked: The KDE used federal grants to pay salaries without any documentation, there isn’t a proper segregation of duties when it comes to school and community nutrition and is an overall mess (there’s a shocker), mountains of unemployment insurance problems and a recommendation for a deeper investigation, there’s super-weak security when it comes to the state’s check writing system, Nikki Jackson left the Personnel Cabinet in a disaster state. That’s just scratching the surface.
What, you want to read the entire thing? Click here (Warning: Huge PDF Link) to download all 219 pages. You’ll especially enjoy Hollenbach’s hilarious responses… that get immediately refuted by the Auditor. It’s basically a mishmash of Little Todd complaining that he doesn’t know how to do his job and Adam saying, “Uh, so what? Do your job that you’re paid mountains of cash to do.”
P.S. One thing we forgot to mention: Adam Edelen is getting something right that Crit could never really accomplish or didn’t want to. He is refuting responses and pointing out when rubbish is rubbish. THAT is why Kentucky can have nice things.