Internal Auditor

5:12 pm
Wed June 27, 2012

Audit Finds Poor Documentation of Council Discretionary Funds

An internal audit has found half of the grant from the Louisville Metro Council lacked sufficient documentation to determine if the discretionary funds were spent as intended.

Last year, Council President Jim King, D-10, ordered the review in the wake of the ethics controversy involving former Councilwoman Judy Green, who was booted from office over misuse of Neighborhood Development Funds.

The audit looked at 117 grants over the past two fiscal years totaling more $1.9 million in taxpayer dollars and found no wrongdoing. However, it showed the majority of the council’s Neighborhood Development Funds had missing proof of payment, unallowable expenditures or poor documentation to account for the grants.

"The audit was difficult to conduct in that there was a lack of monitoring in place prior to the new administration being there," says Internal Auditor Ingram Quick, adding the lack of documentation of the grants is troubling.

Among the findings are approximately $238,000 of expenditures in which proof of payment was not provided to the city. It also found inconsistencies and a vague criteria for non-profit groups receiving city funds, including over $6,500 in funds that were spent out of compliance with Metro Government rules.

Read more