KY State Auditor Critical of For-Profit School Oversight

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Lexington Herald-Leader

The board that regulates the state’s 122 for-profit colleges provides inadequate oversight, hasn’t had an outside financial audit in 10 years and lacks a clear understanding of its role, according to an audit released Wednesday by State Auditor Crit Luallen.

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“Board leadership is fundamental in establishing the tone for its operations,” Luallen said. “When the leadership is lax and inconsistent, then the quality of the board’s oversight is diminished. It’s essential for the board to carry out its statutory duty to monitor these schools.”

The board is dominated by the same people who run the colleges. Six of its 11 seats are filled by representatives of the colleges themselves. The members of the board are appointed by the governor.

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The audit slammed travel vouchers submitted to and authorized by O&P, including a fast-food restaurant wrapper taped to a sheet of paper with a handwritten note that was turned in as a meal receipt. In another case, supporting documentation for lodging was a handwritten note stating the board member stayed at a hotel for “I think $65″ and “I think food was around $7.00 total.”