2013 Kentucky Revised Statutes
CHAPTER 65A - SPECIAL PURPOSE GOVERNMENTAL ENTITIES
65A.030 Audits, financial statements, and attestation engagements for fiscal periods beginning on or after July 1, 2014.

Download as PDF 65A.030 Audits, financial statements, and attestation engagements for fiscal periods beginning on or after July 1, 2014. (1) (2) For fiscal periods beginning on or after July 1, 2014, requirements relating to audits and financial statements of special purpose governmental entities are as follows: (a) Every special purpose governmental entity with the higher of annual receipts from all sources or annual expenditures of less than one hundred thousand dollars ($100,000) shall: 1. Annually prepare a financial statement; and 2. Once every four (4) years, contract for the application of an attestation engagement as determined by the DLG, as provided in subsection (2) of this section; (b) Every special purpose governmental entity with the higher of annual receipts from all sources or annual expenditures equal to or greater than one hundred thousand dollars ($100,000) but less than five hundred thousand dollars ($500,000) shall: 1. Annually prepare a financial statement; and 2. Once every four (4) years, contract for the provision of an independent audit as provided in subsection (2) of this section; and (c) Every special purpose governmental entity with the higher of annual receipts from all sources or annual expenditures equal to or greater than five hundred thousand dollars ($500,000) shall: 1. Annually prepare a financial statement; and 2. Be audited annually as provided in subsection (2) of this section. (a) To provide for the performance of an audit or attestation engagement as provided in subsection (1)(a) to (c) of this section, the governing body of a special purpose governmental entity shall employ an independent certified public accountant or contract with the Auditor of Public Accounts to conduct the audit or attestation engagement. (b) The audit or attestation engagement shall be completed no later than twelve (12) months following the close of the fiscal year subject to the audit or the attestation engagement. (c) The special purpose governmental entity shall submit for publication on the registry the audit or attestation engagement, in the form and format required by the DLG. (d) The audit or attestation engagement shall conform to: 1. Generally accepted governmental auditing or attestation standards, which means those standards for audits or attestations of governmental organizations, programs, activities, and functions issued by the Comptroller General of the United States; 2. Generally accepted auditing or attestation standards, which means those standards for all audits or attestations promulgated by the American Institute of Certified Public Accountants; and 3. Additional procedures and reporting requirements as may be (3) (4) (5) required by the Auditor of Public Accounts. (e) Upon request, the Auditor of Public Accounts may review the final report and all related work papers and documents of the independent certified public accountant relating to the audit or attestation engagement. (f) If a special purpose governmental entity is required by another provision of law to audit its funds more frequently or more stringently than is required by this section, the special purpose governmental entity shall comply with the provisions of that law, and shall comply with the requirements of paragraph (c) of this subsection. (g) Notwithstanding any provision of the Kentucky Revised Statutes to the contrary, a unit of government furnishing funds directly to a special purpose governmental entity may require additional audits at the expense of the unit of government furnishing the funds. (h) All audit reports, attestation engagement reports, and financial statements of special purpose governmental entities shall be public records. The DLG shall determine which procedures conducted under attestation standards will apply to special purpose governmental entities meeting the conditions established by subsection (1)(a) of this section. The DLG may determine that additional procedures be conducted under attestation standards for specific categories of special purpose governmental entities or for specific special purpose governmental entities, as needed, to obtain the oversight and information deemed necessary by the DLG. Based on the information submitted by special purpose governmental entities under KRS 65A.020 and 65A.090, the DLG shall determine when each special purpose governmental entity was last audited, and shall notify the special purpose governmental entity of when each audit or attestation engagement is due under the new standards and requirements of this section. The DLG may promulgate administrative regulations pursuant to KRS Chapter 13A to implement the provisions of this section. Effective:March 21, 2013 History: Created 2013 Ky. Acts ch. 40, sec. 3, effective March 21, 2013.