MARSHALL COUNTY, Ky. — An audit by the state of Kentucky found the Marshall County Fiscal Court had issues with reporting on some of its financial statements during the fiscal year ending June 30, 2023.
In a news release, Kentucky Auditor Allison Ball's office said auditors tested 67 disbursements totaling more than $5.6 million. According to the auditor's office, issues found included:
- Nineteen disbursements totaling more than $1.5 million that did not have a purchase order.
- Fifteen disbursements totaling more than $2.5 million that had a purchase order that was dated after the invoice date.
- Five disbursements totaling more than $2. 8 million that did not appear to be paid within 30 days because the invoice was not stamped when it was received.
- Five disbursements totaling $14,826 for utilities that were not approved by the fiscal court before being paid and were not included on the preapproved reoccurring expenses.
Another issue the audit found was the fiscal court failed to submit and prepare a SEFA, also known as a Schedule of Expenditures of Federal Awards to the Department for Local Government.
The audit showed there was an overstatement of more than $1.27 million for Federal Emergency Management Agency expenditures.
In a statement, Marshall County Judge Executive Kevin Spraggs said what is supposed to be an annual audit was delayed due to "COVID, disasters and long audit processes." Audits of fiscal year 2022 and 2023 were completed at the end of fiscal year 2024. Because of that, Spraggs said any auditor recommendations and any action wouldn't be done until fiscal year 2025.
In response to the audit, the judge executive said, "This finding covers a fiscal year for which the first half concluded prior to Kevin Spraggs' term as County Judge Executive."
Kevin Neal was the judge executive of Marshall County before Kevin Spraggs.
When it comes to disaster relief, Spraggs said, "The December 2021 tornado was unlike any disaster that we have had to deal with, and in the future if there is another disaster on this scale, the county will be more prepared to anticipate audit-related issues."
Reporters also reached out to the Auditor of Public Accounts Office about the audit. They said they weren't able to give a statement or an interview for the story.
