HINDMAN, KY — An audit of Knott County, Kentucky, has been referred to the state attorney general’s office, the Kentucky State Police, the FBI and the Kentucky Department of Revenue, according to www.kentucky.com. Auditors found that 21 percent of the county’s budget in 2004 was awarded to relatives of local officials or to a local contractor. The audit questioned $1,073,775 in county expenditures and listed 21 findings and recommendations. According to www.kentucky.com, the audit shows that many people who worked for the county’s government received a county vehicle and free gasoline. Employees used the vehicles during non-business hours and for commuting to work. However, the vehicles are not included as part of the employees’ compensation packages, and the employees paid no tax liability for their use. The audit recommends that the Knott County attorney or the attorney general pursue the recovery of overpayments by the county and that the federal government audit all federal grants because of missing records.