Audit On Knott County Questions Nearly $13.5 Million In Spending

PIKEVILLE, Ky. (AP) - A state audit is questioning nearly the entire 14-(M) million-dollar budget of an eastern Kentucky county with a history of misspending funds, according to documents released today.

State Auditor Crit Luallen says quote -- "It's simply unacceptable that we have this continuing level of mismanagement and possible corruption." -- end quote.

The audit scrutinizing 13-and-a-half (M) million dollars in Knott County's spending came a day after FBI agents raided county offices. The latest audit is the third report since 2004 to raise questions about the county's finances. The FBI wouldn't comment on the reason for yesterday's raid.

Luallen's office referred the audit to the FBI, the Internal Revenue Service, the US Department of Labor and the US Attorney's Office.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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