It has been an honor for me to have the opportunity to address the great citizens of Meade County over the last month or so. In previous articles, I spoke of the great work of our office as it relates to our audits and exams. In this article, I wanted to take just a moment to touch on a few of the many pieces of great legislation we have helped advance by listening to our constituents and working with members of the KY General Assembly.

One such bill supported by our office during my administration and passed in the 2018 Legislative Session was Senate Bill 144. This bill that was sponsored by Sen. Stan Humphries, R-Cadiz, to help reduce audit costs on annual audits for county sheriffs and county clerks, while at the same time still holding them accountable to the taxpayers.

An internal review of our 2015 audit reports found that around half of Kentucky’s sheriffs, and two-thirds of county clerks had clean audits, or no reported findings. This bill has allowed my office the option to do a less costly agreed-upon procedures engagement (AUP) for those county officials instead of a full financial statement audit.

SB 144 allows the Auditor of Public Accounts to do an AUP, which reviews key internal controls or specific activities of a county sheriff or county clerk’s office. The bill was based on similar legislation that passed in Ohio, and although we conservatively estimated the savings to counties with an AUP would be between 25 and 50 percent, we have found it actually coming in at an average of 65% to 70%. This bill is one way to help counties save money, recognize the good work that many of our clerks and sheriffs are doing in managing their finances, and also serve as an incentive for those who may only have one audit finding to strive toward meeting the requirements for an AUP.

Other great pieces of legislation we have supported based on input from citizens and legislators include HB 189 (2017) which provided Area Development District transparency by giving APA the right of first refusal to do annual audits of ADDs and the right to review CPA audit workpapers. Another example is HB 192 (2018), which allows jail canteen funds to be used to provide enhanced safety and security within jails across Kentucky.

One common thread of the legislation that my office has championed or guided through the legislative process is that these bills have tried to help state and local governments be more efficient, effective, and ethical.

However, none of this would have been possible without the great individuals in the Kentucky General Assembly working with us. One such individual I have mentioned in the past is Representative Nancy Tate.

I have said in the past and will say again, it has been my honor to get to know Representative Nancy Tate and see how hard she has worked for the citizens of the 27th House District. I have appreciated her conservative values and how well she listens to her constituents. That is why it is very easy for me to provide my endorsement for Representative Tate in her re-election efforts. I want to wish her the best of luck.

Thanks and God Bless,
Mike Harmon
KY Auditor of Public Account