KCTCS Audit Reveals No Fraud but Calls for Improvements in Policies and Training

VERSAILLES, Ky. — The Kentucky Community and Technical College System (KCTCS) has released findings from an external audit carried out by KPMG, aimed at enhancing the efficiency and accountability of the education system across the state. The audit, part of KCTCS’s initiative under President Ryan Quarles, confirmed that no fraud or criminal activity was discovered. However, it emphasized the necessity for improvements in internal policies, procedures, and staff training.

Quarles, who assumed his role as KCTCS president in January, stated, “I was hired to fix KCTCS and that’s exactly what I’m doing.” He expressed appreciation for the audit’s recommendations, which he believes will better position the system to respond to the needs of both Kentuckians and employers.

“We appreciate the hard work of KPMG, and we’re pleased to receive these recommendations,” said Todd Kilburn, KCTCS’s chief financial officer. The college system plans to address the audit’s recommendations by reviewing, updating, and enhancing their internal practices and training programs.

The audit was initiated following a report from the state auditor’s office last year that highlighted significant issues regarding financial management at KCTCS. Among the findings was an alarming accumulation of carryforward funds totaling $75 million and overcharging of $24 million to community colleges. Additionally, the previous audit reported a failure to properly document spending and nepotism cases as per existing policies.

In response to these findings, former State Auditor Mike Harmon advocated for an external forensic audit, stressing the importance of transparency and fiscal responsibility within the system. KCTCS sought the audit earlier in 2023 amid ongoing concerns regarding the misappropriation of funds and a lack of oversight by the Board of Regents.

The focus now shifts to implementing the audit’s suggestions, as KCTCS commits to completing a detailed review and prioritizing staff training to foster accountability. The recommendations from the KPMG audit are accessible on the KCTCS website for public review.