FRANKFORT, Ky. — The State Auditor’s Office has now released the findings from an audit into the largest school system in the Commonwealth — the Kentucky Community and Technical College System.

Earlier this year, KCTCS requested the audit over concerns of millions of dollars in misused funds, overcharging colleges and lack of transparency with the Board of Regents.

In the report, the auditor’s office found that the carryforward funds had reached $75 million, after not being carried over into the next year. Community colleges were overcharged by $24 million. The system office also did not track accumulated spending and failed to disclose nepotism decisions required by policy. 

“Our auditors also provided KCTCS with numerous recommendations to address the findings in the report,” said Auditor Mike Harmon, R-Ky. “KCTCS serves thousands of students throughout all regions of the Commonwealth, and it is my hope that KCTCS can use this report to address necessary issues and continue to be a leader in post-secondary education for all of Kentucky.”

The auditor’s office said that the school system needs to review their policies and recommends they hire outside forensic accounting agencies to keep track of these funds. It also recommends the school system return money to community and technical colleges that were overcharged since 2018. 

"We have already begun that process, implementing new policies and procedures in advance of the State Auditor’s final recommendations. It is readily apparent that we can and must do more to ensure accountability and transparency, and everyone at KCTCS is committed to doing just that,” said Barry K. Martin, Chair of the KCTCS Board of Regents.