Cabinet and controller’s office officials briefed the House Appropriations and Revenue Committee on a series of claims included in House Bill 545 that, according to presenters, resulted from administrative issues such as invoices delayed across fiscal years, contract extensions not executed on time, or services performed while contract terms were being renegotiated.

Holly Johnson, secretary of the Cabinet for Finance and Administration, and Joe McDaniel, executive director of the Office of the Controller, appeared and answered committee questions about specific claims and whether statutory or procedural changes are needed to reduce recurrence.

Officials reviewed a list of individual claims to explain why each appeared in the claims bill packet. Committee material and testimony identified the following examples (amounts and characterizations are as presented to the committee):

- Capital Solutions LLC — approximately $14,700; board approved work but the personal‑service contract was not indexed in the state contract system (EMARS) in time for routine processing.
- Carahsoft Technology Corp. — one invoice under $2,000 and a second invoice around $54,000; presenters said invoice reconciliation across multiple years created delays while the Commonwealth validated receipt of goods and services.
- Johnson County Fiscal Court — approximately $1,415,000; described as an MOU matter validated as an obligation but paperwork was not in standard contract form in time.
- Justice AV (JAV) items — multiple claims where prior contracts had expired and services continued while an extension or new contract was being negotiated.
- Lead for America — approximately $34,000; presenters reported vendor registration issues in the state vendor system and an agency report that an incoming executive director did not properly execute the contract.
- Magellan Rx Management — approximately $222,000; vendor performed rebate services for Medicaid in a one‑month transition period while the state moved to a new vendor.
- Phillips Healthcare — approximately $48,900; characterized as invoice exceeding agency spending authority at the KCTCS system.
- Proactive LTC Consulting — approximately $5,700; agency missed renewal deadline and services continued.
- Sander Resources — approximately $29,000; work continued after the contract reached its dollar limit and modifications were pending.
- University of Kentucky Research Foundation — approximately $443,000; vendor continued performing services under existing contract terms while an extension/modification was still pending final approval.

McDaniel told the committee some claims resulted from board approvals or agency actions where the vendor or contract record was not entered into EMARS or where invoices spanned fiscal years; in other instances vendors continued work during contract transitions to avoid service interruption. He told members he was not aware of a statutory revision needed at this time but asked the committee to communicate any systemic trends to the cabinet.

Chair Johnny Petrie framed the claims discussion as routine for the claims bill process and emphasized the committee’s interest in preventing a pattern of services performed without executed contracts. He told members the agenda item was discussion only and that the committee would likely return for a truncated discussion next week to consider the totality of claims materials.

Ending: The committee concluded its review of the claims items and asked the cabinet and controller’s office to follow up if further statutory or procedural changes are recommended.