The audit of the Kentucky Community and Technical College System, conducted by the third-party firm KPMG, mainly revealed a lack of policies or the need for more robust controls over financial decisions.
"One finding was with our carryover account, which was quite large and the audit said there was no fraud, but we recommend this large account be broken into more manageable accounts so it's easier to keep track of in the future," KCTCS President Ryan Quarles told WKU Public Radio. "I was hired to fix KCTCS and I welcome these audit findings."
The audit was the system's final step in addressing recommendations made last year by then-state Auditor Mike Harmon following a special examination. Harmon's office made several findings, including that KCTCS had overcharged individual community colleges a combined $24 million between 2018 and 2023.
Quarles, who took the helm of KCTCS in January, says all of those issues have been corrected and KCTCS will now focus on implementing recommendations from the latest audit.
“Although audit findings can be revealing, I’ve taken the stance that we welcome these results because it makes us a better organization," Quarles said. "I’ve always been a big fan that transparency is the best form of disinfectant.”
KCTCS will begin implementing the suggested improvements with the help of a new chief financial officer. Todd Kilburn assumed the CFO position in June.
Quarles will present a KCTCS reform package to an interim legislative committee on Dec. 10 that will include proposals to overhaul everything from governance to affordability, marking the first significant reform of the system since 1997.
Another audit is underway involving the Kentucky Fire Commission (KFC). The commission has been attached to KCTCS for more than two decades for administrative purposes. KFC handles most of the training for Kentucky firefighters, many of whom are receiving college credit for the training they complete.
After receiving concerns about financial and HR practices, Quarles requested the audit of KFC, and those results are expected in the spring.
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