VERSAILLES, Ky. — The Kentucky Community and Technical College System revealed the results of an external audit conducted by KPMG, a global network of professional firms providing audit, tax and advisory services. It is part of an effort to “improve and advance the system to serve more Kentuckians and employers” according to KCTCS President Ryan Quarles.

The college system said the audit found no fraud or criminal behavior. However, the report called for the improvement of internal policies, procedures and staff training to ensure proper implementation.

“I was hired to fix KCTCS and that’s exactly what I’m doing,” said Quarles, who became KCTCS’ fourth president in January.

“This deep dive into our finances, policies and procedures resulted in numerous recommendations that will help us achieve greater efficiency and responsiveness across-the-board. I appreciate the recommendations and look forward to their thorough implementation,” he added.

“We appreciate the hard work of KPMG, and we’re pleased to receive these recommendations,” said Todd Kilburn, chief financial officer of KCTCS. “We look forward to updating and improving our internal policies and procedures and implementing training opportunities to improve our processes and accountability.”

KCTCS said its next steps are to complete a review of the recommendations, implement the recommended procedures and train staff.

The audits recommendations are available on the KCTCS website.

The audit was ordered after a report by the state auditor’s office last year found money mismanagement at KCTCS. That audit found the carryforward funds had reached $75 million after not being carried over into the next year and that community colleges were overcharged by $24 million. The system office, the report said, also did not track accumulated spending and failed to disclose nepotism decisions required by policy.

The outside forensic audit was a recommendation from then-State Auditor Mike Harmon, R-Ky., who also recommended the school system return money to community and technical colleges that were overcharged since 2018.

KCTCS requested the audit by the state auditor earlier in 2023 over concerns of millions of dollars in misused funds, overcharging colleges and lack of transparency with the Board of Regents.