Christian County Judge-Executive Jerry Gilliam is defending the county’s latest fiscal court audit, saying the findings identified by the Kentucky Auditor of Public Accounts involved administrative and reporting issues — not fraud, missing money, or misuse of taxpayer funds.
During a public discussion of the audit held Monday afternoon at the sheriff’s office, Gilliam said audits are intended to identify weaknesses and improve procedures, adding that findings, or evidence-backed conclusions drawn by auditors that highlight discrepancies involving established standards, are common among Kentucky counties.
According to figures he shared, 44 of 55 fiscal court audits completed statewide for fiscal year 2024 contained at least one finding, while 10 of the first 15 completed audits this fiscal year also included findings. He also said he doesn’t always agree with the process auditors use.
click to download audioThe Christian County audit included four findings, three of which were repeat findings. Those included failures to implement effective internal controls over financial reporting, approving cash transfers before they were made, inadequate controls over disbursements, and errors in the Schedule of Expenditures of Federal Awards (SEFA) for pandemic-related funds.
Gilliam and County Treasurer Natalie Pyle explained that many of the findings stemmed from reporting errors, purchase order procedures, and bookkeeping entries related to large projects such as the county’s ongoing radio communications system upgrade. Pyle said one audit issue involved an incorrect journal entry tied to the drawdown structure of the county’s radio system bond, which overstated financial statements by approximately $1.3 million.
click to download audioCounty officials also addressed findings tied to cash transfers between county funds. Pyle said the county had relied on a standing court order dating back to the 1980s that allowed transfers before formal fiscal court approval, but auditors determined the practice should stop. Gilliam said the county has already changed the process so that transfers now receive advance approval.
Another finding involved purchase order practices. Gilliam acknowledged the county failed to obtain three quotes before purchasing two road department vehicles from a dealership that holds a state contract.
click to download audioHe also defended the procurement process used for the county’s radio communication upgrades, saying the proprietary Kenwood-based system limited bidding options because replacement components must remain compatible with the existing infrastructure.
When asked by Dr. John Heltsley what is being done to address the repeated findings, Gilliam said the county is implementing corrective action plans and continues to work with auditors to improve procedures and financial oversight.
The discussion also included a question from resident John Springer about transparency and the reason the forum was scheduled for a Monday afternoon.
click to download audioGilliam repeatedly stressed the audit contained no findings of fraud or theft and noted the county still received an unmodified opinion on its major federal programs.
