2014 Kentucky Revised Statutes
CHAPTER 91A - FINANCE AND REVENUE OF CITIES
91A.040 Annual city audits -- Publication -- Contents -- Exemption -- Penalties.
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<![CDATA[91A.040
Annual city audits -- Publication -- Contents -- Exemption -Penalties.
(1)
(2)
(3)
(4)
Except as provided in subsections (2) and (3) of this section, each city 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 an electronic copy or three (3) paper copies of the audit
report to the Department for Local Government for information purposes. The
Department for Local Government shall forward one (1) electronic or paper
copy of the audit report to the Legislative Research Commission to be used for
the purposes of KRS 6.955 to 6.975.
A city with a population of less than one thousand (1,000) based upon the most
recent federal decennial census 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, the city shall forward
an electronic copy or three (3) paper copies of the audit report to the
Department for Local Government for information purposes. The Department
for Local Government shall forward one (1) electronic or paper 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 city subject to the provisions of this subsection shall prepare a
financial statement in accordance with KRS 424.220 and immediately forward
one (1) electronic or paper copy to the Department for Local Government,
which shall forward one (1) electronic or paper copy of the financial statement
to the Legislative Research Commission.
Any city, 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
exempted in accordance with this subsection shall annually prepare a financial
statement in accordance with KRS 424.220 and immediately forward one (1)
electronic or paper copy to the Department for Local Government for
information purposes. The Department for Local Government shall be
responsible for forwarding one (1) electronic or paper 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)
(5)
(6)
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) 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 shall 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
(7)
(8)
with KRS 424.220, when a financial statement is required by 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 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:January 1, 2015
History: Amended 2014 Ky. Acts ch. 5, sec. 3, effective July 15, 2014; and ch. 92,
sec. 88, effective January 1, 2015. -- 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.
Legislative Research Commission Note (1/1/2015). This statute was amended by
2014 Ky. Acts chs. 5 and 92, which do not appear to be in conflict and have
been codified together.
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