Kentucky Auditor Mike Harmon has released a long-awaited audit of the Louisville Arena Authority, which oversees the financial management of the KFC Yum! Center.
The auditor found the LAA and the University of Louisville Athletics Association routinely fail to meet the annual deadline for finalizing annual payments. The two parties share the revenue generated from the KFC Yum! Center.
In a news release, Harmon said this repeated delay in finalizing the payments increases the risk of undetected errors and cash flow problems for the arena authority. He recommends better coordination between the parties to meet the deadlines and improve oversight.
“The KFC Yum! Center is an important investment for the Commonwealth, the city of Louisville, and the University of Louisville. Yet, since the opening of the KFC Yum! Center the Louisville Arena Authority has faltered badly, and the financial position of ULAA has dramatically improved,” Harmon said in the news release. “The state has stepped up with a willingness to expand the TIF, but now it’s time for all parties involved to make the commitment necessary to put the arena on a sustainable path.
Harmon’s office will present details of the audit to members of the Capital Projects and Bond Oversight Committee at its June 20 meeting in Frankfort.