Regular, yearly audits of the Kentucky Emergency Management agency found more than $5 million of questionable spending.
As a result, State Auditor Adam Edelen began a special exam into the agency in March.
The report shows money wrongfully spent at conferences for alcohol, entertainment, and door prizes.
To hide the abuse, the report says documents were altered and employees were threatened to not speak about the spending.
At the time of the audit, General John Heltzel was the director of Kentucky Emergency Management and continues to serve in that position.