Kentucky Community and Technical College System Completes Forensic Audit with No Fraud Detected, Calls for Policy Improvements

Frankfort, Kentucky – The Kentucky Community and Technical College System (KCTCS) has released findings from an external forensic audit conducted by KPMG, which revealed no evidence of fraud or criminal activities within the organization. However, the audit pointed out the necessity for improvements in internal policies, procedures, and staff training to facilitate better practices moving forward.

KCTCS President Ryan Quarles, who began his role in January 2023 amidst the push for the forensic audit, expressed his commitment to reforming the system. “I was hired to fix KCTCS and that’s exactly what I’m doing,” he stated. He emphasized that the comprehensive review of the system’s finances and procedures has produced valuable recommendations aimed at enhancing overall efficiency and responsiveness.

The forensic audit was initiated as part of a directive from the Kentucky General Assembly (SJR 179) earlier this year, which mandated KCTCS to report findings and improvement actions by December 10. Quarles had previously launched a priority review of the system’s policies and procedures in anticipation of this audit.

The audit followed a special examination report issued by the state auditor’s office nearly a year ago, the findings of which have now been addressed. Chief Financial Officer Todd Kilburn, who joined KCTCS in June, noted the importance of the audit and stated, “We appreciate the hard work of KPMG, and we’re pleased to receive these recommendations.” He highlighted the organization’s commitment to updating internal policies and enhancing accountability through improved staff training and procedural refinements.

Moving forward, KCTCS aims to finalize the review of the audit’s recommendations. This will involve implementing new procedures and delivering adequate training for all staff members. The system serves as Kentucky’s largest provider of workforce training and post-secondary education, with an annual enrollment surpassing 100,000 students and encompassing 16 regional colleges as well as a central office.

As KCTCS embarks on this journey of reform, the focus remains on fostering a transparent and effective educational environment that meets the evolving needs of its students and the state of Kentucky.