Annual audit makes 69 findings with recommendations on the city’s financial statements and its oversight of federal dollars
(FRANKFORT, KY 3-24-10) State Auditor Crit Luallen today released the annual audit of Louisville Metro government, which makes 69 findings with recommendations on the city’s financial reporting and its oversight of federal dollars.
Auditors issued a “qualified” opinion in both areas, meaning they encountered weaknesses in the city’s oversight of financial reporting and federal grants.
The audit found weaknesses in how the city tracks its overall revenue and how the Department of Corrections handles cash management and inmate receipts.
Other findings recommend improvements in the departments of Housing and Family Services, Public Works, Neighborhoods and Animal Services.
The audit, which reviews Louisville’s finances from July 1, 2008 to June 30, 2009, also questions $94,000 in federal disaster and workforce funding.
“Our audit raises several concerns in areas of metro government that need the city’s full attention in order to improve accountability going forward,” Luallen said. “We offer numerous recommendations in the audit as tools for Louisville Metro to strengthen financial oversight.”
Kentucky law requires the state auditor to annually audit Louisville Metro government. The state auditor may grant permission to the city to hire a private CPA firm.
Luallen’s office performed the first three audits of metro government after merger in fiscal years 2003-2005. Strothman and Company of Louisville audited metro government from 2006-2008.
Last year, Luallen audited the city’s housing department for fiscal year 2008, and that audit was included in the city’s overall audit. The housing audit, issued last February, made 43 findings and 58 recommendations to strengthen financial management and controls in the department.
Many of the issues found in last year’s housing audit have been resolved, Luallen said, adding that the city must continue to address all issues in the department until they are corrected.
“Significant progress has been made in housing over the last year,” Luallen said. “The city and the leadership in the department have taken our previous audit seriously and are using our recommendations to continue efforts to strengthen the overall management of the department.”