Mayor: City financial audit may be completed by end of January 2020

NC GAZETTE / WBRT RADIO
STAFF REPORT

Friday, Dec. 27, 2019 — Bardstown Mayor Dick Heaton told WBRT Hometown Radio Friday morning that the audit to determine exactly how much money was misappropriated by the former CFO should be complete by the end of January 2020.

“We’ve been at it for about three months,” Heaton said. “What people may not understand is the magnitude of the audit work required.”

Heaton was a guest Friday morning on WBRT’s Local Community Connection program that airs at 11 a.m. every Tuesday and Friday.

The city bills more than $33 million for city services annually — and that includes electric, water, sewer, garbage, cable TV, and internet. All of the deposits made from those revenue sources are being examined and reconciled, which is time-intensive work, he explained.

Heaton said the audit for 2019 and 2018 are completed, and auditors now are combing through 2017 records.

Former CFO Tracy Hudson was named CFO in April 2015.

“We know when it stopped, and we want to go all the way back to when it started so we identify any and all missing funds,” he told WBRT’s Roth Stratton.

The city received a portion of the misappropriated funds — $134,121 — back in the form of a check via Hudson’s attorney. Heaton said the city may be able to recoup some of its losses through its insurance company.

In a prior interview, Heaton said the city will turn over the final results of its audit to the Kentucky State Police for their investigation.

Heaton contacted KSP a day or two after learning of the financial irregularities in the city’s finance department, and was told that the city should complete its audit before KSP gets involved in the case.

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