August 6, 2013Major General Edward ToniniAdjutant General, Department of Military AffairsThe Auditor of Public Accounts (APA) has completed its examination of the KentuckyEmergency Management (KYEM).
This letter summarizes the procedures performed andcommunicates the results of those procedures.Examination procedures included interviewing current and former staff concerning KYEM
environment and operating activities; reviewing expenditure transactions associated with the
ergency Management Workshop (GEMW) for 2010, 2011, and 2012; andreviewing certain additional financial activity related to KYEM
’s federal grant activities
for fiscal years 2010 through 2013.The purpose of this examination was not to provide an opinion on financial statements, but toensure appropriate processes are in place to provide strong oversight of financial activity of KYEM and to review specific issues brought to the attention of this office.Detailed findings and recommendations based on our examination are presented in this report toassist all parties involved for improving procedures and internal controls. Overall, these findings
identify serious concerns with regards to management’s override of appropriate policies and
procedures leading to excessive and/or unnecessary expenditures, possible noncompliance withfederal grant requirements, and a lack of proper oversight. Due to the seriousness of thesematters, this report will be referred to the Kentucky Executive Branch Ethics Commission, theU.S. Department of Homeland Security, and the Kentucky Attorney General.If you have any questions or wish to discuss this report further, contact me or Libby Carlin,Assistant Auditor of Public Accounts.Sincerely,Adam H. EdelenAuditor of Public Accounts