Governor Fletcher Requests State Auditor's Office Conduct Examination of the Commission's Activities

             Frankfort, KY: Governor Ernie Fletcher today requested that the state auditor's office conduct an examination of some activities of the former Kentucky Racing Commission and review new procedures implemented by the new Kentucky Horse Racing Authority.  Governor Fletcher made the request after the Environmental and Public Protection Cabinet discovered certain personnel, procurement and payment practices of the former commission that appear to be in conflict with ordinary and proper state government procedures.

            A January 6, 2004 Executive Order, signed by Governor Fletcher, created the new authority and also abolished the commission. In addition to regulating the horse industry in Kentucky the authority is charged with marketing the $1.7 billion business.

            In a letter to Crit Luallen, auditor of public accounts, Governor Fletcher said an independent review is warranted due to the discovery of administrative irregularities.

            "While we already have taken steps to remedy some clear problems, we believe a full evaluation of the body's past practices is in order,"said Governor Ernie Fletcher. "An audit would determine whether these activities violated state law and would obtain recommendations for accounting and procedural steps that should be implemented to insure proper fiscal and operational accountability."

            Governor Fletcher said the cabinet found no reconciliation between a licensing database and the bank statement, as it appeared state travel regulations have not been followed and timesheets were inconsistent. The governor requested the auditor's office test the security and data integrity of the licensing system, and review travel expenditures, payroll procedures and the newly implemented procedures.  

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