LOUISVILLE, Ky. — A new audit found community colleges, like Jefferson County Technical College (JCTC), were overcharged more than $24 million by the Kentucky Community and Technical College System (KCTCS).
Kentucky Auditor Mike Harmon released the results of his investigation Thursday, which mainly focused on activities by KCTCS's System Office between July 1, 2020 and April 30, 2023.
According to a news release, the investigation contained five findings and two observations.
A spokesperson for the Commonwealth of Kentucky explained that Harmon's office started their investigation in May 2023 after the system's president at the time sent a request to the Office of the Auditor of Public Accounts (APA) on behalf of KCTCS's Board of Regents who had given the president at the time the authority to make the request.
“As the system prepares to welcome a new president, it is our hope this examination provides insight into some of their operations and gives them a road map to address the issues identified by our office,” Harmon said.
State Agriculture Commissioner Ryan Quarles was selected on Sept. 29 as the next president of KCTCS.
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A breakdown of the findings and observations discussed in the state audit report include:
- KCTCS System Office’s unrestricted carryforward balance is not accurately or transparently reported to the Board
- KCTCS overcharged community colleges $24 million and retained the proceeds from the overcharges as part of the System Office’s unrestricted carryforward balance
- KCTCS System Office fund balances do not agree to fund balance amounts reported to individual community colleges
- KCTCS did not use its accounting system to track accumulated spending and did not maintain all relevant procurement and bid documentation
- KCTCS failed to collect feedback from companies involved in TRAINS projects and $10,778 in duplicate payments were identified
- Misunderstanding regarding workforce training funding led to concerns about a transfer to the KCTCS general fund
- KCTCS nepotism disclosures were not completed as required by policy
“Our auditors also provided KCTCS with numerous recommendations to address the findings in the report,” Harmon said. “KCTCS serves thousands of students throughout all regions of the Commonwealth, and it is my hope that KCTCS can use this report to address necessary issues and continue to be a leader in post-secondary education for all of Kentucky.”
KCTCS sent WHAS11 a statement in response to the state audit saying the new administration requested the audit and these results confirm their suspicions.
"Dr. Quarles has expressed his intent to act quickly and decisively to correct any deficiencies in business and accounting practices that predate his assumption of the KCTCS Presidency on January 1, 2024," a portion of their response said. "In anticipation of this report, the System began creating and implementing new policies and procedures to promote transparency and clear oversight."
Full report:
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