FRANKFORT — An annual audit of Kentucky government uncovered potentially serious problems with a software system the Personnel Cabinet launched in April, state Auditor Adam Edelen announced Tuesday.
State officials failed to properly test the Kentucky Human Resource Information System, or KHRIS, before it began last spring, according to the audit.
Several instances of errors and improper payments were noted during the KHRIS transition period, auditors found.
For example, auditors learned of a state employee who incorrectly received $10,284 in payments due to a typo, Edelen said in a prepared statement. In its response, the Personnel Cabinet blamed that mistake on an error by the state corrections department, though it said the error was noticed and fixed.
The Personnel Cabinet said it was working to address other issues raised by the audit.
Auditors also found problems with oversight of the Transportation Cabinet's bridge inspections, Edelen said.
Auditors checked inspection reports to see if they had been reviewed by Transportation Cabinet officials. Eight of the 40 selected reports had not, Edelen said.
"In order to properly prioritize spending on maintenance of the 8,933 bridges maintained by the commonwealth, the cabinet has to carefully review the bridge inspection reports," Edelen said.
Auditors also found:
■ The Cabinet for Health and Family Services should improve financial oversight at Hazelwood, a state-owned home in Louisville for people with intellectual and developmental disabilities.
■ The Department of Military Affairs incurred $20,760 in late payments during fiscal year 2011 because it failed to pay its bills in a timely manner.
■ The Department of Education shifted the pay and benefits for two employees from the state's General Fund to a federal program without documentation to support the move. One of the employees whose salary was moved prepared the transfer, auditors wrote.
■ The Kentucky Horse Park in Lexington incurred $3,503 in late payments for bills it did not pay in a timely manner.
■ The Kentucky State Treasury needs to reconcile the state's bank accounts every month in a timely manner. Oversights, errors and miscalculations might occur and remain undetected when the state's bank accounts are not promptly reconciled, auditors wrote.
The auditor's office issues a sweeping, two-part audit of state government every year. The second part of the 2011 audit, focused on the state's compliance with federal grant rules, is scheduled to be released in March.
