Kentucky Auditor Mike Harmon released an audit Tuesday of Christian County Fiscal Court from the 2020 fiscal year, which featured one comment.
Harmon’s office reported the audit was clean, except for the jail commissary funds. During the audit, the account was tested. It was noted a payment to a local private school was made for a basketball fundraiser of which an immediate family member of Jailer Brad Boyd was a beneficiary.
The $1,200 payment was for the purchase of 240 boxes of snack cakes. The cost of each box was $5. The same items could be purchased at local variety stores for approximately $2 per box, which would have cost the jail commissary about $480.
The inflated purchase price of the transaction effectively removed $720 from commissary funds that could have been used for the benefit and safety of prisoners and created an inappropriate donation to a private school, which reduced the personal expenses of the student/parent who was participating in the fundraiser.
The report stated that funds from that account should not be used as a donation to private institutions or create personal benefit. According to Jailer Boyd, he was unaware that the purchase of the snack cakes at an inflated price caused the purchase to essentially be a donation to the private school, which is prohibited by Kentucky and Christian County laws. Internal controls were also ineffective in preventing the jailer or staff from spending commissary funds on a donation.
Harmon’s office recommends that Jailer Boyd refrain from making inflated purchases that create donations to private entities and ensure that commissary profit is only used to benefit inmates. The jailer should also abstain from actions that appear to violate the Christian County Ethics Code.
Following the audit, Jailer Boyd said the Christian County Jail would refrain from purchasing snack cakes from local fundraisers.
KRS 441.135 states, “(1) The jailer may maintain a canteen for the benefit of prisoners lodged in the jail and may assign such jail employees and prisoners to operate the canteen as are necessary for efficient operation. (2) All profits from the canteen shall be used: (a) For the benefit and to enhance the well-being of the prisoners; or (b) To enhance safety and security within the jail. (3) Allowable expenditures from a canteen account shall include but not be limited to recreational, vocational, and medical purposes.”
Additionally, the Christian County Ethics Code prohibits transactions that create personal benefit by stating, “II. A. No county government officer…shall…engage in any…transaction…which is in substantial conflict with the proper discharge of his duties in the public interest. B. No county government officer…shall use or attempt to use his official position to secure unwarranted privileges or advantages for himself or others.”
The Kentucky Constitution, Section 177 states, “[t]he credit of the Commonwealth shall not be given, pledged or loaned to any individual, company, corporation or association, municipality, or political subdivision of the State; nor shall the Commonwealth become an owner or stockholder in, nor make donation to, any company, association or corporation[.]” Christian County is a political subdivision of the Commonwealth, and as such is bound to the provisions in Section 177 of the Constitution. Additionally, The County Budget Preparation and State Local Finance Officer Policy Manual issued by the Department for Local Government (DLG), prohibits donations, by stating, “[n]o bonuses, no prepayment for goods or services, and no contributions.”
