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Thompson Audit

Gray, KY

#1 Jan 7, 2014
Auditor Edelen Releases City of Barbourville Special Examination

FRANKFORT, Ky.(January 7, 2014) Auditor Adam Edelen on Tuesday released a special examination of the City of Barbourville, finding lax controls that allowed the mayor and others to exert undue influence over financial activities and likely benefit personally.

The report, which contains 28 findings and recommendations, will be referred to the Attorney General, Kentucky Department of Revenue and Cabinet for Health and Family Services. The exam was launched last summer upon request by five of the six city council members.

“Small Kentucky communities, which are the lifeblood of our Commonwealth, need to be responsible stewards of extremely limited yet important resources,” Auditor Adam Edelen said.

Auditors found lax controls and oversight that led to financial mismanagement and abuses.

The exam found that a general contractor, plumber and electrician were paid for work that the city street department could perform at little or no additional cost to the city. In 2007 and 2008, a contractor was paid more than $73,000 for work such as painting, tree pruning and mulching. Bids weren’t obtained, written contracts establishing hourly rates or scopes of work were not in place and invoices didn’t itemize the costs and hours worked.

Auditors found that the mayor and his wife had a practice of cashing checks for employees and vendors, giving the appearance of comingling public and private funds. It indicates the possibility that payments to some individuals were not solely for the benefit of the city.

Auditors identified several issues with the Barbourville Brickyard Waves Water Park, which the city leases from Union College. The mayor appears to have a conflict of interest between fulfilling taxpayers’ interest and his private financial interest in securing the position of water park manager for his wife. The mayor should have removed himself from the hiring process but did not.

Auditors found the mayor routinely authorized free water park passes to certain individuals. The Recreation Board is responsible for oversight of the water park and is a component unit of the city. Because of that, the mayor and others didn’t have authorization to give out passes, which appeared excessive and resulted in a loss of revenue to the city.

Water and ball park concession revenues and expenditures were not reported to the Recreation Board as required and the mayor and his wife did not provide that documentation to auditors upon request.

“The public has no idea how much money these park concessions made or how it was spent,” Auditor Edelen said. Parks may seem like small potatoes to some, but they are important community assets.”

Auditors also found that the former water park manager potentially reaped greater profits by reporting inaccurate payroll expenses to the city.

Auditors identified abuses elsewhere in city operations:

Rent payments for space in a city building were suspended for one vendor unnecessarily, resulting in lost revenue to the city.
The city didn’t receive vending machine revenue for six years despite contracts that stated it would.
The city didn’t receive all expected revenue from the sale of aluminum to a Lexington recycling company.
The city didn’t receive revenue from the sale of metal appliances.
The city didn’t properly advertise for bids for fuel and asphalt expenditures over $20,000 and bid specifications were unnecessarily restrictive for some items, preventing fair competition from potential vendors.
Work at a Civil War park went to the highest bidder without justification.
The exam also found repair and remodeling work of a city-owned building lacked oversight, potentially costing taxpayers more money. Oversight of fuel purchases and gravel stockpiles also was insufficient.
wondering

Gray, KY

#2 Jan 7, 2014
Raymond smith did less than this and got federal prison time. Looks to me like the mayor and his wife should get the same treatment !
gator 3

Brownsville, TN

#3 Jan 7, 2014
Wow Knox co. On and on
redneck

London, KY

#4 Jan 7, 2014
Poor Darren west cant and wont stop will he? Bless his heart. He has went above and beyond to try to take Mayor Thompsons position even though we all know he could NEVER handle it.. All I know is he and his wife both have some issues. I mean who gets fired from a bank for letting their husband look in peoples accounts after hours?????? That's completely terrible! And as for his little incident stealing ALLLLLL that money that he thinks no one knows about.. GUESS AGAIN!
rly

London, KY

#5 Jan 7, 2014
I do not know about the rest but I know forsure that they didn't cash our checks at the waterpark and make us pay them for it. That's a lie. They did that because they were nice people.
rly

London, KY

#6 Jan 7, 2014
wondering wrote:
Raymond smith did less than this and got federal prison time. Looks to me like the mayor and his wife should get the same treatment !


You cant believe everything you read. This stuff isn't true. Theres just an idiot putting this stuff on here.(Darren West). Very Jealous and dangerous person in disguise wanting to take the mayors position.
Facts

United States

#7 Jan 7, 2014
raped

Manchester, KY

#8 Jan 7, 2014
rly wrote:
<quoted text>
You cant believe everything you read. This stuff isn't true. Theres just an idiot putting this stuff on here.(Darren West). Very Jealous and dangerous person in disguise wanting to take the mayors position.
Looks like another case of Knox County political leadership, screwing the folks. This time looks like the wife screwed a few also. All you good folks should demand a kiss from them, a good flucking deserves a good kiss.
LOL

London, KY

#9 Jan 7, 2014
Speaking of Darren.. who knew he would be sleeping with his kids BABYSITTERS?!??? I wondered why his wife kept firing each one.
raped

Manchester, KY

#10 Jan 7, 2014
LOL wrote:
Speaking of Darren.. who knew he would be sleeping with his kids BABYSITTERS?!??? I wondered why his wife kept firing each one.
I wondered about that myself when I noticed it on the auditors report, I thought......now what does that have to do with a crooked politician and his wife abusing public trust.
wondering

Gray, KY

#11 Jan 7, 2014
What does West have to do with the auditors findings ? Did he plant evidence lol get a grip people. Politicians are screwing us all and lining their pockets. Idk west or Thompson and his wife but I guarantee u all 3 are crooked as my brothers teeth !!!
Travis

Keavy, KY

#12 Jan 7, 2014
I worked for Wendy at the park and yes she cashed my check. Most of the time it was the weekend and I could not get it cashed. I thank her that
raped

Manchester, KY

#13 Jan 7, 2014
gator 3 wrote:
Wow Knox co. On and on
The state auditors and other watchdogs in Frankfort know how corrupt the Knox County public officials have been over the years. When are you guys gonna change your voting habits and elect some people there that are responsible and honest?

The dummies you put in office continue to make an arse out of themselves and every citizen in the county. All the auditors have to do is throw all the offices in a hat and draw one out and they will find the same problems.....Thats just the way it is in the County. You guys need to get some decent people in office.
John

United States

#14 Jan 7, 2014
Yes west probably did plant evidence. He's a snake in the grass. He's dying to be mayor but he knows no one would vote for him.
John

United States

#15 Jan 7, 2014
raped wrote:
<quoted text>
I wondered about that myself when I noticed it on the auditors report, I thought......now what does that have to do with a crooked politician and his wife abusing public trust.
Just speaking about what a snake he is! Like it or lump it ;) freedom of speech.
jack

Mount Vernon, KY

#16 Jan 7, 2014
good maybe someone will step up and do something for this town now!
jane

Manchester, KY

#17 Jan 7, 2014
John wrote:
<quoted text>
Just speaking about what a snake he is! Like it or lump it ;) freedom of speech.
That is your biased opinion,.. The audit report on the issue is documented investigative facts.
Like it or lump it...still facts vs some ones opinion.
Truth

Brodhead, KY

#18 Jan 7, 2014
Wonder who the vendors were? It would be interesting to know.
Bob

Keavy, KY

#19 Jan 7, 2014
I agree
top

Keavy, KY

#20 Jan 7, 2014
Who gives a rats ass about if the mayor gave away a few free passes to the water park?? That's what he should do!! Who care if a project goes out to the highest bidder??? Sometimes you get why you pay for!! Who cares if he lets his wife be a manager at the water park?? The city looks better than ever!!! Just look around..... I'd say David Thompson has done a great job. Has anyone ever heard of a politician that didn't bend the rules a little or favor someone a little here and there??? Hell no!!! He is good for barbourville. Done a good job.

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