Ky. auditor finds ‘small number’ of incorrect payments from state tornado relief fund
FRANKFORT, Ky. (WTVQ) — Kentucky Auditor Mike Harmon said his office found a “small number” of incorrect payments resulting from the state’s Team Western Kentucky Tornado Relief Fund after conducting a special examination.
Harmon’s office released the findings Tuesday afternoon, saying it found discrepancies in the tornado relief fund, however, noted it found no discrepancies in the Team Eastern Kentucky Flood Relief Fund.
The request came from the Legislative Oversight and Investigation Committee on July 17 after it was reported that monies from the relief fund(s) were sent to Kentuckians who didn’t request the money nor said they needed it.
Harmon said he found the following:
Team Western Kentucky Tornado Relief Fund
Total Inappropriate Payments: $239,785
Total Expenditures: $42,334,075
Error Rate: 0.57%
Team Eastern Kentucky Flood Relief Fund
Total Inappropriate Payments: $-
Total Expenditures: $5,390,286
Error Rate: 0.00%
Auditors found the “inappropriate” payments from the tornado relief fund included duplicate payments, people who received payments that were later deemed ineligible and overpayments. The majority of the inappropriate payments pertained to the $1,000 Team Western Kentucky Tornado Relief Fund Second Assistance Payments. The Second Assistance Payments had an error rate of 2.14% representing a total of $213,000.
Most of the “inappropriate” Tornado Relief Fund Second Assistance Payments were issued to people who claimed damage to property outside the designated disaster area.
The special examination also found that for the tornado relief fund, 194 checks totaling $200,000 were canceled because the recipient rejected the payment (approximately 90% of the canceled checks were from the tornado relief fund’s Second Assistance Payment). For the flood relief fund, four checks totaling $2,000 were canceled for the same reason.
As of Sept. 8, 1,706 checks remained outstanding that had been issued before June 30.
You can review the complete report below:
