Wednesday, March 14, 2012

Walls responds to Loy about HVA audit

Yesterday I posted an entry about the audit committee meeting, the probe into the Public Building Authority’s handling of the Hardin Valley Academy Project and some other stuff. In addition, I published local developer Sandy Loy’s letter to county internal auditor Richard Walls.

In the note, he expressed dismay about a number of things. You can read the whole thing right smack here.

And today's story is right smack here.

Walls this morning responded to Loy. Here’s what he had to say:

Thanks for your comments.

I apologize for the slow response. We have had a death in our family and I will be out of the office until Monday.

You may have misunderstood a few of the items we discussed today:

(1) Our report was not issued and then withdrawn. The body of our report initially issued to the audit committee remained unchanged.

(2) We included the issues you raised in our work plan and most of them were satisfactorily explained. Part of our process included an outside consultant in order to make sure an independent third party concurred with what we found.

(3) The project manager's salary was not included with the payroll that was directly charged to the project. It is accumulated in an overhead account with other items and simply then allocated to various projects based on hours worked & an allocation rate, rather than actual costs.

(4) We feel confident our audit report was fact based and included all findings we felt were relevant. At no time was any finding negotiated. If facts were presented (and verified by us) to us that satisfactorily explained the issue, there simply was not anything to report.

(5) We confirmed the Law Director's opinion with the State Comptroller's Office.
I'm sorry you feel the way you do, however, I wish you the best.

Best regards,

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