An examination of the Kentucky Community and Technical College System from the state auditor’s office says the organization overcharged schools by more than $24 million.
The investigation focused on activities from the system office from July 1, 2020 to April 30, 2023.
A news release says KCTCS requested the audit earlier this year through its Board of Regents, to “investigate actions taken by past administrators.” Former system president Paul Czarapata resigned last February.
“In response to the report’s findings, the Board of Regents and current administration will work closely with the General Assembly, regulatory agencies and Council on Postsecondary Education to make necessary reforms,” Board of Regents chair Barry K. Martin said in the release. We have already begun that process, implementing new policies and procedures in advance of the State Auditor’s final recommendations.”
Findings from the audit also included a lack of transparency with its carryforward fund, disparities with balances reported to individual colleges and a failure to track spending through its accounting system.
According to the release, the total results include five findings and two observations:
- KCTCS System Office’s unrestricted carryforward balance is not accurately or transparently reported to the Board;
- KCTCS overcharged community colleges $24 million and retained the proceeds from the overcharges as part of the System Office’s unrestricted carryforward balance;
- KCTCS System Office fund balances do not agree to fund balance amounts reported to individual community colleges;
- KCTCS did not use its accounting system to track accumulated spending and did not maintain all relevant procurement and bid documentation;
- KCTCS failed to collect feedback from companies involved in TRAINS projects and $10,778 in duplicate payments were identified;
- Misunderstanding regarding workforce training funding led to concerns about a transfer to the KCTCS general fund; and
- KCTCS nepotism disclosures were not completed as required by policy.
Outgoing Commissioner of Agriculture Ryan Quarles will take office as KCTCS’s next president next year.
The Kentucky Community and Technical College System is a financial supporter of WEKU.
