2014 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.
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<![CDATA[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) 1.
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.
2.
A federally regulated municipal utility may comply with the
requirements of this section for the public power component of its
operations by submitting an audit that conforms to the requirements
imposed by the federal agency with which it maintains a wholesale
power contract.
3.
A public utility established pursuant to KRS 96.740 that is not a
federally regulated municipal utility may comply with the
requirements of this section for the public power component of its
operations by submitting a copy of its annual audit performed under
KRS 96.840.
(d) 1.
(3)
(4)
The audit or attestation engagement shall conform to:
a.
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;
b.
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
c.
Additional procedures and reporting requirements as may be
required by the Auditor of Public Accounts.
2.
Rather than meeting the standards established by subparagraph 1.
of this paragraph, the audit submitted by a federally regulated
municipal utility or a public utility established pursuant to KRS
96.740 that is not a federally regulated municipal utility with regard
to the public power component of the utility's operations shall
conform to KRS 96.840 and the financial standards of the Federal
Energy Regulatory Commission's Uniform System of 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.
(5)
The DLG may promulgate administrative regulations pursuant to KRS Chapter
13A to implement the provisions of this section.
Effective:March 19, 2014
History: Amended 2014 Ky. Acts ch. 7, sec. 3, effective March 19, 2014. -Created 2013 Ky. Acts ch. 40, sec. 3, effective March 21, 2013.
Legislative Research Commission Note (3/19/2014). 2014 Ky. Acts ch. 7, sec. 11
provides that the amendments to this statute made in 2014 Ky. Acts ch. 7, sec.
3, shall apply retroactively beginning January 1, 2014.
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