The audit by the US Office of Inspector General was part of a series of reviews meant to track pandemic screening and testing programs.
While the report found Kentucky generally maintained documentation to support its testing services, it also identified seven venders that it says did not prove their compliance with at least one of the requirements to act as a school testing service.
Out a random sample of 292 contracted employees, the audit also found 75 employees who did not have background checks completed prior to performing the testing.
Kentucky officials have agreed to update procedures for compliance, but according to the audit, the state has not signaled whether it will concur with the office's second recommendation — a CDC investigation of more than $4.5 million in COVID spending, which could force the state to refund money to the federal government.