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A financial review that turned up "excessive and questionable spending" at the Kentucky League of Cities has been turned over to state and federal law enforcement agencies.

State Auditor Crit Luallen said Thursday she forwarded the report to law enforcement "because of the nature and complexity of the exam's findings."

Those findings included high pay for executives of the quasi-governmental organization that is primarily funded by public money, conflicts of interest in spending, undocumented credit card expenses and gifts from vendors, including admission to a Las Vegas strip club for three League staff members.

The audit team of state financial experts found 19 positions in the organization paid more than $100,000 — some far more, thanks to raises over the past seven years.

Auditors noted that the executive director's salary had risen since 2002 from $170,000 to $331,000, and that the deputy executive director's pay rose over the same period from $141,00 to $255,000. They also noted a raise that took the chief insurance services officer salary from $124,000 to nearly $239,000.



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