Powell County's jail fund had a deficit of $402,000 in the fiscal year ending last June 30, state Auditor Adam Edelen's office announced Saturday.
The audit found that the fiscal court transferred money that was supposed to be used for roadwork to prop up the county's jail and ambulance funds.
The audit said the jail overspent its budget by $171,233. The audit recommended the county work with the state Department for Local Government to eliminate the deficits.
In a response included in the audit, Judge-Executive James Anderson said the jail had faced some unexpected repairs and that the county was putting a plan in place to cut the account deficits.