LOUISVILLE (WHAS11) – Kentucky Auditor Mike Harmon released the results of his audit of the Louisville Arena Authority on May 18.

The finding in the financial statement audit concerns the failure to timely finalize the annual payment under a lease agreement between LAA and the University of Louisville Athletics Association (ULAA), which sets forth the revenue-sharing arrangements between the two parties.

Auditors reviewed two years, 2016 and 2017, the calculation and payment were completed after the deadlines. The lease agreement terms say the payment should be calculated by April 20 of each year and made by April 30.

Harmon’s office says this leads to the ULAA and LAA not giving information to each other in a timely manner and increases the risk of errors in calculation and cash flow problems not being found.

The audit recommends better coordination between the LAA, ULAA and any third parties.

The details of this audit will be presented by Harmon’s office at a June 20 meeting in Frankfort.

“The KFC Yum! Center is an important investment for the Commonwealth, the city of Louisville, and the University of Louisville. Yet, since the opening of the KFC Yum! Center the Louisville Arena Authority has faltered badly, and the financial position of ULAA has dramatically improved,” Auditor Harmon said. “The state has stepped up with a willingness to expand the TIF, but now it’s time for all parties involved to make the commitment necessary to put the arena on a sustainable path.”

The full audit is available here.