2016 Kentucky Revised Statutes CHAPTER 65A - SPECIAL PURPOSE GOVERNMENTAL ENTITIES .040 Failure to submit information or submitting noncompliant information -- Notice -- Withholding of funds -- Audit or special examination -- Distribution of funds upon compliance -- Action to enforce reporting requirements.
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65A.040 Failure to submit information or submitting noncompliant information -Notice -- Withholding of funds -- Audit or special examination -- Distribution
of funds upon compliance -- Action to enforce reporting requirements.
(1)
(2)
(3)
The provisions of this section shall apply when any special purpose governmental
entity fails to submit information or submits noncompliant information under KRS
65A.020.
If a special purpose governmental entity fails to submit information in a timely
manner or submits noncompliant information, the DLG shall, within thirty (30) days
after the due date of the information, notify the special purpose governmental entity
and the establishing entity in writing that:
(a) Either:
1.
The required information was not submitted in a timely manner; or
2.
The information submitted was noncompliant and the reason for
noncompliance;
(b) The special purpose governmental entity shall have thirty (30) days from the
date of the notice to submit the information; and
(c) Failure to submit compliant information:
1.
Will result in:
a.
Any funds due the entity and in the possession of any agency,
entity, or branch of state government being withheld by the state
government entity until the report or information is submitted; and
b.
Publication of a notice of noncompliance in a newspaper having
general circulation in the area where the special purpose
governmental entity operates; and
2.
May result in the Auditor of Public Accounts or the auditor's designee
performing an audit or special examination of the special purpose
governmental entity at the expense of the entity.
Upon the failure of a special purpose governmental entity to submit information in
response to the notice sent under subsection (2) of this section, the DLG shall,
within fifteen (15) days after the passage of the thirty (30) day period:
(a) Notify in writing the Auditor of Public Accounts, the establishing entity, and
any entity having oversight or responsibility of the special purpose
governmental entity at the state level. The notice shall include at a minimum
the name, mailing address, and primary contact name for the special purpose
governmental entity, as well as details about the information that is past due;
(b) Notify the Finance and Administration Cabinet that the special purpose
governmental entity has failed to comply with the reporting requirements of
KRS 65A.010 to 65A.090, and that any funds in the possession of any agency,
entity, or branch of state government shall be withheld until further notice;
and
(c) 1.
Cause to be published in the newspaper having general circulation in the
area where the special purpose governmental entity operates a notice of
(4)
(5)
(6)
(7)
noncompliance. The notice shall meet the requirements of KRS Chapter
424 and shall include:
a.
Identification of the special purpose governmental entity;
b.
A statement that the special purpose governmental entity failed to
comply with the reporting requirements established by KRS
65A.020;
c.
The names of the board members of the special purpose
governmental entity;
d.
The name and contact information of the individual provided as
the contact for the special purpose governmental entity; and
e.
Any other information the DLG may require.
2.
The cost of publication of the notice shall be borne by the special
purpose governmental entity. If the notice includes more than one (1)
special purpose governmental entity, the cost shall be divided equally
among the entities included in the notice.
Upon receipt of notification under subsection (3)(b) of this section, the secretary of
the Finance and Administration Cabinet shall, within ten (10) days after receipt of
the notice, notify all state agencies, entities, and branches of state government to
withhold any funds due the noncompliant special purpose governmental entity.
(a) The Auditor of Public Accounts shall, within thirty (30) days after the receipt
of information from the DLG under subsection (3)(a) of this subsection, notify
in writing the special purpose governmental entity that the entity may be
subject to an audit or special examination at the expense of the special
purpose governmental entity.
(b) The Auditor of Public Accounts may initiate an audit or special examination
of any special purpose governmental entity any time after sending the notice
required by paragraph (a) of this subsection. Any audit or special examination
initiated pursuant to this subsection shall be at the expense of the special
purpose governmental entity.
(c) Once commenced, an audit or special examination may be completed
regardless of whether the special purpose governmental entity subsequently
submits the required information.
(d) The audit or special examination shall be prepared and submitted as required
by KRS 65A.020 and 65A.030.
Upon receipt of all required information from a noncompliant special purpose
governmental entity, the DLG shall notify in writing the Auditor of Public
Accounts, the establishing entity, and the Finance and Administration Cabinet, and
the secretary of the Finance and Administration Cabinet shall notify all state
agencies, entities, and branches of state government that funds withheld may once
again be distributed to the special purpose governmental entity.
Any resident or property owner of the service area of a special purpose
governmental entity may bring an action in the Circuit Court to enforce the
provisions of KRS 65A.020. The Circuit Court, in its discretion, may allow the
prevailing party, other than the special purpose governmental entity, a reasonable
attorney's fee and court costs, to be paid from the special purpose governmental
entity's treasury.
Effective: March 21, 2013
History: Created 2013 Ky. Acts ch. 40, sec. 4, effective March 21, 2013.
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