Audit Reveals Concerns in Salyersville Water Works Management

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News Summary

A statewide audit led by State Auditor Allison Ball reveals significant governance and financial management issues within Salyersville Water Works, prompting city takeover. The audit highlights financial mismanagement and operational challenges, raising concerns across Kentucky’s water districts. Additionally, discussions about the economic impact of basketball crowds in Lexington underscore the region’s vibrant community engagement and fiscal growth.

Lexington, KY – A recent episode of Kentucky Newsmakers showcased a discussion led by State Auditor Allison Ball regarding the findings of a statewide audit, alongside insights from VisitLEX President Mary Quinn Ramer about the economic impact of basketball crowds in Lexington. The audit, which was implemented to examine the financial and operational performance of the state’s water systems, brought to light significant concerns pertaining to the management of Salyersville Water Works (SWW).

In January, Ball’s office concluded a limited-scope examination of SWW, covering financial and operational procedures from July 2021 through March 2024. The initiative was prompted by tips from residents and city officials who raised concerns about the water utility’s governance. Following the audit, Salyersville Water Works was taken over by the city in 2024, moving away from the previous management structure not directly affiliated with the city.

While presenting the audit findings, Ball emphasized that the issues uncovered are not unique to SWW, suggesting a broader concern within various water districts statewide. Key problems identified included financial adjustments made without adherence to established policies, with nearly $1 million in such adjustments recorded in early 2024. The former management faced financial difficulties, marked by improper securing of funds and expenditures that exceeded predefined budgets.

Changes implemented by the city administration have focused on improving financial oversight. This includes reorganizing financial records and establishing a protocol for daily deposits into secured funding accounts. These steps aim to enhance the financial integrity of Salyersville Water Works moving forward.

Salyersville’s Mayor Stanley Howard pledged to resolve existing issues, promising not to raise water rates amidst ongoing improvements to the water infrastructure. One significant finding from the audit revealed instances of overcharging customers attributed to human errors in meter reading. To address this challenge, state grant funding is being utilized to automate the meter reading process, which should contribute to more accurate billing and service delivery.

The broadcast also ventured into the economic aspect of sports in Lexington, notably focusing on an upcoming college basketball game that will feature Arkansas facing off against Kentucky. This game is significant as it marks the return of coach John Calipari to Rupp Arena, this time at the helm of the Arkansas team. The excitement surrounding such events underscores the financial influx that basketball crowds bring to Lexington and the state’s economy at large.

In summary, State Auditor Allison Ball’s findings from the audit of Salyersville Water Works highlight critical governance and financial management issues that echo broader concerns within Kentucky’s water districts. Concurrently, discussions surrounding the economic benefits of sports in Lexington, particularly college basketball, continue to emphasize the vibrant interplay between community engagement and fiscal growth in the region.

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