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91A.040 Annual city audits -- Publication -- Contents -- Exception -- Penalties.
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Each city of the first through fifth class shall, after the close of each fiscal year,
cause each fund of the city to be audited by the Auditor of Public Accounts or a
certified public accountant. The audits shall be completed by February 1
immediately following the fiscal year being audited. Within ten (10) days of the
completion of the audit and its presentation to the city legislative body, in
accordance with subsection (4)(e) of this section, each city shall forward three
(3) copies of the audit report to the Department for Local Government for
information purposes. The Department for Local Government shall forward one
(1) copy of the audit report to the Legislative Research Commission to be used
for the purposes of KRS 6.955 to 6.975.
Except as provided in subsection (3) of this section, each city of the sixth class
shall, after the close of each odd-numbered fiscal year, cause each fund of the
city to be audited by the Auditor of Public Accounts or a certified public
accountant. The audits shall be completed by February 1 immediately following
the fiscal year to be audited. Within ten (10) days of the completion of the audit
and its presentation to the city legislative body, in accordance with subsection
(4)(e) of this section, each sixth class city shall forward three (3) copies of the
audit report to the Department for Local Government for information purposes.
The Department for Local Government shall forward one (1) copy of the audit
report to the Legislative Research Commission to be used for the purposes of
KRS 6.955 to 6.975. After the close of each even-numbered fiscal year, each
sixth class city shall prepare a financial statement in accordance with KRS
424.220 and immediately forward one (1) copy to the Department for Local
Government, which shall forward one (1) copy of the financial statement to the
Legislative Research Commission.
Any city of the sixth class, which for any fiscal year receives and expends, from
all sources and for all purposes, less than seventy-five thousand dollars
($75,000), and which has no long-term debt, whether general obligation or
revenue debt, shall not be required to audit each fund of the city for that
particular fiscal year. Each city shall annually prepare a financial statement in
accordance with KRS 424.220 and immediately forward one (1) copy to the
Department for Local Government for information purposes. The Department
for Local Government shall be responsible for forwarding one (1) copy of the
financial statement to the Legislative Research Commission to be used for the
purposes of KRS 6.955 to 6.975.
Each city required by this section to conduct an annual or biannual audit shall
enter into a written contract with the selected auditor. The contract shall set
forth all terms and conditions of the agreement which shall include but not be
limited to requirements that:
(a) The auditor be employed to examine the basic financial statements,
which shall include the government-wide and fund financial statements;
(b) The auditor shall include in the annual city audit report an examination of
local government economic assistance funds granted to the city under
KRS 42.450 to 42.495. The auditor shall include a certification with the
annual audit report that the funds were expended for the purpose
intended;
(c)
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All audit information be prepared in accordance with generally accepted
governmental auditing standards which include tests of the accounting
records and auditing procedures considered necessary in the
circumstances. Where the audit is to cover the use of state or federal
funds, appropriate state or federal guidelines shall be utilized;
(d) The auditor prepare a typewritten or printed report embodying:
1.
The basic financial statements and accompanying supplemental
and required supplemental information;
2.
The auditor's opinion on the basic financial statements or reasons
why an opinion cannot be expressed; and
3.
Findings required to be reported as a result of the audit;
(e) The completed audit and all accompanying documentation shall be
presented to the city legislative body at a regular or special meeting; and
(f) Any contract with a certified public accountant for an audit shall require
the accountant to forward a copy of the audit report and management
letters to the Auditor of Public Accounts upon request of the city or the
Auditor of Public Accounts, and the Auditor of Public Accounts shall have
the right to review the certified public accountant's work papers upon
request.
A copy of an audit report which meets the requirements of this section shall be
considered satisfactory and final in meeting any official request to a city for
financial data, except for statutory or judicial requirements, or requirements of
the Legislative Research Commission necessary to carry out the purposes of
KRS 6.955 to 6.975.
Each city shall, within thirty (30) days after the presentation of an audit to the
city legislative body, publish an advertisement in accordance with KRS Chapter
424 containing:
(a) The auditor's opinion letter;
(b) The "Budgetary Comparison Schedules-Major Funds," which shall
include the general fund and all major funds;
(c) A statement that a copy of the complete audit report, including financial
statements and supplemental information, is on file at city hall and is
available for public inspection during normal business hours;
(d) A statement that any citizen may obtain from city hall a copy of the
complete audit report, including financial statements and supplemental
information, for his personal use;
(e) A statement which notifies citizens requesting a personal copy of the city
audit report that they will be charged for duplication costs at a rate that
shall not exceed twenty-five cents ($0.25) per page; and
(f) A statement that copies of the financial statement prepared in accordance
with KRS 424.220 are available to the public at no cost at the business
address of the officer responsible for preparation of the statement.
Any city of the fifth or sixth class may utilize the alternative publication methods
authorized by KRS 424.190(2) to comply with the provisions of this section.
Any person who violates any provision of this section shall be fined not less
than fifty dollars ($50) nor more than five hundred dollars ($500). In addition,
any officer who fails to comply with any of the provisions of this section shall,
for each failure, be subject to a forfeiture of not less than fifty dollars ($50) nor
more than five hundred dollars ($500), in the discretion of the court, which may
be recovered only once in a civil action brought by any resident of the city. The
costs of all proceedings, including a reasonable fee for the attorney of the
resident bringing the action, shall be assessed against the unsuccessful party.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 117, sec. 68, effective July 15, 2010. -Amended 2007 Ky. Acts ch. 47, sec. 62, effective June 26, 2007. -- Amended
2006 Ky. Acts ch. 8, sec. 2, effective July 12, 2006. -- Amended 2000 Ky. Acts
ch. 89, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 69,
sec. 46, effective July 15, 1998. -- Amended 1992 Ky. Acts ch. 33, sec. 4,
effective July 14, 1992. -- Amended 1990 Ky. Acts ch. 52, sec. 1, effective July
13, 1990. -- Amended 1986 Ky. Acts ch. 331, sec. 22, effective July 15, 1986. -Amended 1984 Ky. Acts ch. 111, sec. 173, effective July 13, 1984. -- Amended
1982 Ky. Acts ch. 393, sec. 45, effective July 15, 1982; ch. 407, sec. 1, effective
July 15, 1982; and ch. 430, sec. 1, effective July 15, 1982. -- Created 1980 Ky.
Acts ch. 232, sec. 4, effective July 15, 1980.
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