Gravel inventory, employee health insurance atop fiscal court audit

August 2, 2017

The results of an independent audit of the Knox County Fiscal Court has yielded fewer comments than last year’s report.


The audit, conducted with approval by the Kentucky Auditor of Public Accounts office, was carried out by Roy W. Hunter, CPA, PLLC for the fiscal year ending June 30, 2016. “The Knox Fiscal Court placed a request with our office they be allowed to hire a CPA firm to do their 2016 audit, which we approved,” said Michael Goins, a representative with the Kentucky Auditor of Public Accounts office. Because of the approved independent audit, there will not be an audit from Kentucky Auditor Mike Harmon for the 2016 fiscal year.

According to Knox County Judge-Executive J.M. Hall, the state audits the fiscal court once every four years. It’s up to the fiscal court to request an independent audit be performed during the remaining three years.

The audit found the fiscal court’s financial condition to record a “total receipts of $16,874,245 and disbursements of $18,288,627 in fiscal year 2016. This resulted in a total ending fund balance of $3,289,803, which is a decrease of $1,414,382 from the prior year.”

Comments reported in the audit were as follows:

  • The Knox County Fiscal Court did not have strong internal controls over disbursements;
  • The Knox County Fiscal Court did not have adequate internal controls over gravel inventory;
  • The Knox County Fiscal Court did not ensure the same level of health insurance benefits are provided to all county employees as stated in Kentucky Attorney General Opinion (OAG) 94-15;
  • The Knox County Jail Commissary lacks adequate segregation of duties over receipts and disbursements.

The comments reflect some of the same issues in last year’s audit report from Harmon’s office concerning gravel inventory and health insurance.

“They want us to log all the incoming gravel. We do that, but each driver will need to write it down now,” said Hall.

The repeated concern of county employee health insurance is a repeat of previous years’ audits.

According to the 2015 state audit, the county covers insurance premiums for all county employees, but only overs family insurance policies for elected officials. “Our county attorney says we aren’t the same,” said Hall. “The state has already said that elected officials are not county employees. We don’t get sick days or vacation days, and the salary stays the same between elections.”

Having fewer comments in 2016 than in previous years, Hall was happy with the outcome. “I feel like this was a good audit. I am well pleased with it,” he said.

For a complete copy of the 2016 fiscal court audit, select below:

2016knoxfcaudit