Thursday, December 20, 2012

State Auditor Edelen faults Bluegrass mental-health agency for executive compensation, lax management and board oversight

The Bluegrass Regional Mental Health-Mental Retardation Board, a nonprofit agency that gets two-thirds of its money from taxpayers, "paid more than $2.8 million in executive-benefit contributions since 1997 to the president/CEO and various other employees solely at the discretion of the President/CEO with no scrutiny by board members," state Auditor Adam Edelen said in a press release this morning. "The contributions, which are designed to retain talent within an organization, were largely awarded to a core group of central office administrative staff while health-care employees received either no contributions or less significant amounts."

Edelen's release said the audit, made in response to "news media reports and anonymous concerns," also "found problems with . . . spending without supporting documentation and lax management practices." For example, Bluegrass spent $172,025 on lobbying from January 2011 to September 2012 without adequate documentation, and President/CEO Shannon Ware, right, and a consultant "spent nearly $38,000 on credit cards during an 18-month period without detailed receipts to document the business purposes," the release said. The full report is available here. It confirmed several findings by the Lexington Herald-Leader; for the H-L story on the audit, by John Cheves, go here.

1 comment:

  1. Given all the executives had fat KRS pensions, If we had full disclosure on pension benefits like public salaries problems like this could have been exposed years ago. Why does the auditor not recommend pension transparency to prevent abuses like this and those with the "Ghost" special districts.