State Auditor Releases Scathing KLC Review

by Rick Howlett on December 17, 2009

From Kentucky Public Radio’s Tony McVeigh

A five-month, state audit of the non-profit, Kentucky League of Cities finds high salaries, conflicts of interest and weak board oversight.

The 228-page audit says lack of board oversight resulted in unprecedented salaries for executive staff, exorbitant retirement bonuses, numerous conflicts of interest and hundreds of thousands of dollars in questionable spending. State Auditor Crit LuAllen says she was shocked and outraged at the findings.

“If KLC is to continue providing valuable services to the cities, many of which are struggling, this board must strengthen its financial oversight and our audit gives the board the necessary tools to move forward successfully.”

LuAllen says because of the nature and complexity of many of the findings, the audit has been referred to state and federal law enforcement agencies and the IRS. The audit makes 140 recommendations for improvements.

The audit can be viewed here.

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