State audit finds financial mismanagement in Barbourville

The city of Barbourville and some of its boards bought products without obtaining bids; paid far more for land than the assessed value; and hired contractors for work that city employees could have done far cheaper, according to an audit released Tuesday.

The audit also found that Mayor David Thompson influenced the hiring of his wife at the city-run water park, and that the water park did not file state sales tax returns on concessions while she was in charge.

State Auditor Adam Edelen's office started the special examination of the city and its boards last summer at the request of five of the city's six city council members.

Council members had expressed concern about activities that could indicate mismanagement, according to the audit.

The audit, released Tuesday, covered July 2007 through August 2013 and identified a number of problems, including lax controls and oversight that led to financial mismanagement and abuses.

Edelen's office referred some findings to Attorney General Jack Conway's office and the state Department of Revenue, and recommended that others be referred to a regional ethics board.

"Small Kentucky communities, which are the lifeblood of our Commonwealth, need to be responsible stewards of extremely limited yet important resources," Edelen said in a statement.

Thompson, who has been in office since January 2007, did not return a call seeking comment.

However, he said in a letter to the auditor's office that he accepted all 28 findings and would implement the document's recommendations to fix problems.

For instance, Thompson said sales tax returns had been filed, and that he would give up his voting slot on the local tourism and recreation boards.

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State audit finds financial mismanagement in Barbourville