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Audit finds problems in Knox County; results referred to Attorney General

Results of an unflattering audit of the Knox County Fiscal Court will be referred to Kentucky Attorney General Jack Conway.

"We will refer this audit to the Office of Attorney General because of a number of significant issues we found during this process. That Office will determine if further investigation is needed," Luallen said in an audit summary released Tuesday.

In the audit, the Knox Fiscal Court was reprimanded for 15 different negative comments. Among the infractions was the court's failure to approve transactions involving two dump trucks listed on the county's insurance policy but not listed on the county's capital asset report.

Knox County Judge/Executive J.M. Hall transferred the titles of the two trucks to the county from relatives of the judge/executive, the audit said.

Auditors also offered recommendations dealing with the Knox County Detention Center. Jail officials were called out because "detailed disbursement ledgers were not maintained, daily checkout sheets were not prepared and deposits were not made timely and the jailer did not present a financial statement to the treasurer for fiscal year ended (sic) June 30, 2010," the audit stated.

"We recommend the jailer comply with the above requirements by preparing accurate daily checkout sheets, reconciling the daily checkout sheets to daily deposits and receipts ledger, reconciling receipts and disbursements in the computer system to the bank statements, and preparing a detailed disbursements ledger," it said in the audit.  "We also recommend the jailer present a detailed yearly financial statement to the county treasurer. This should include the beginning cash balance, summary of receipts and disbursements, and the reconciled year-end balance."

The audit report also suggests that all Knox employees be provided with the same health insurance coverage. Currently all Knox electe officials, along with one appointed official, are provided with family insurance coverage while others are not, the report revealed.

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