91A.040 Annual city audits -- Publication -- Contents -- Exception -- Penalties.
(1) 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 <br>certified public accountant. The audits shall be completed by February 1 <br>immediately following the fiscal year being audited. Within ten (10) days of the <br>completion of the audit and its presentation to the city legislative body, in <br>accordance with subsection (4)(e) of this section, each city shall forward three (3) <br>copies of the audit report to the Department for Local Government for information <br>purposes. The Department for Local Government shall forward one (1) copy of the <br>audit report to the Legislative Research Commission to be used for the purposes of <br>KRS 6.955 to 6.975.
(2) 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 <br>be audited by the Auditor of Public Accounts or a certified public accountant. The <br>audits shall be completed by February 1 immediately following the fiscal year to be <br>audited. Within ten (10) days of the completion of the audit and its presentation to <br>the city legislative body, in accordance with subsection (4)(e) of this section, each <br>sixth class city shall forward three (3) copies of the audit report to the Department <br>for Local Government for information purposes. The Department for Local <br>Government shall forward one (1) copy of the audit report to the Legislative <br>Research Commission to be used for the purposes of KRS 6.955 to 6.975. After the <br>close of each even-numbered fiscal year, each sixth class city shall prepare a <br>financial statement in accordance with KRS 424.220 and immediately forward one <br>(1) copy to the Department for Local Government, which shall forward one (1) copy <br>of the financial statement to the Legislative Research Commission.
(3) 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 <br>which has no long-term debt, whether general obligation or revenue debt, shall not <br>be required to audit each fund of the city for that particular fiscal year. Each city <br>shall annually prepare a financial statement in accordance with KRS 424.220 and <br>immediately forward one (1) copy to the Department for Local Government for <br>information purposes. The Department for Local Government shall be responsible <br>for forwarding one (1) copy of the financial statement to the Legislative Research <br>Commission to be used for the purposes of KRS 6.955 to 6.975.
(4) 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 <br>terms and conditions of the agreement which shall include but not be limited to <br>requirements that: <br>(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 <br>42.450 to 42.495. The auditor shall include a certification with the annual <br>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 <br>and auditing procedures considered necessary in the circumstances. Where the <br>audit is to cover the use of state or federal funds, appropriate state or federal <br>guidelines shall be utilized;
(d) The auditor prepare a typewritten or printed report embodying:
1.
The basic financial statements and accompanying supplemental and <br>required supplemental information;
2.
The auditor's opinion on the basic financial statements or reasons why <br>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 <br>Auditor of Public Accounts upon request of the city or the Auditor of Public <br>Accounts, and the Auditor of Public Accounts shall have the right to review <br>the certified public accountant's work papers upon request.
(5) 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 <br>financial data, except for statutory or judicial requirements, or requirements of the <br>Legislative Research Commission necessary to carry out the purposes of KRS 6.955 <br>to 6.975.
(6) 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 <br>containing: <br>(a) The auditor's opinion letter; <br>(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 <br>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 <br>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 <br>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 <br>the officer responsible for preparation of the statement.
(7) 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.
(8) 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 <br>officer who fails to comply with any of the provisions of this section shall, for each <br>failure, be subject to a forfeiture of not less than fifty dollars ($50) nor more than <br>five hundred dollars ($500), in the discretion of the court, which may be recovered <br>only once in a civil action brought by any resident of the city. The costs of all <br>proceedings, including a reasonable fee for the attorney of the resident bringing the <br>action, shall be assessed against the unsuccessful party.
Effective: July 15, 2010 <br>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 <br>ch. 8, sec. 2, effective July 12, 2006. -- Amended 2000 Ky. Acts ch. 89, sec. 1, <br>effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 69, sec. 46, effective July 15, <br>1998. -- Amended 1992 Ky. Acts ch. 33, sec. 4, effective July 14, 1992. -- Amended <br>1990 Ky. Acts ch. 52, sec. 1, effective July 13, 1990. -- Amended 1986 Ky. Acts <br>ch. 331, sec. 22, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 111, <br>sec. 173, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 393, sec. 45, <br>effective July 15, 1982; ch. 407, sec. 1, effective July 15, 1982; and ch. 430, sec. 1, <br>effective July 15, 1982. -- Created 1980 Ky. Acts ch. 232, sec. 4, effective July 15, <br>1980.
91A.040 Annual city audits -- Publication -- Contents -- Exception -- Penalties.
(1) 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 <br>certified public accountant. The audits shall be completed by February 1 <br>immediately following the fiscal year being audited. Within ten (10) days of the <br>completion of the audit and its presentation to the city legislative body, in <br>accordance with subsection (4)(e) of this section, each city shall forward three (3) <br>copies of the audit report to the Department for Local Government for information <br>purposes. The Department for Local Government shall forward one (1) copy of the <br>audit report to the Legislative Research Commission to be used for the purposes of <br>KRS 6.955 to 6.975.
(2) 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 <br>be audited by the Auditor of Public Accounts or a certified public accountant. The <br>audits shall be completed by February 1 immediately following the fiscal year to be <br>audited. Within ten (10) days of the completion of the audit and its presentation to <br>the city legislative body, in accordance with subsection (4)(e) of this section, each <br>sixth class city shall forward three (3) copies of the audit report to the Department <br>for Local Government for information purposes. The Department for Local <br>Government shall forward one (1) copy of the audit report to the Legislative <br>Research Commission to be used for the purposes of KRS 6.955 to 6.975. After the <br>close of each even-numbered fiscal year, each sixth class city shall prepare a <br>financial statement in accordance with KRS 424.220 and immediately forward one <br>(1) copy to the Department for Local Government, which shall forward one (1) copy <br>of the financial statement to the Legislative Research Commission.
(3) 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 <br>which has no long-term debt, whether general obligation or revenue debt, shall not <br>be required to audit each fund of the city for that particular fiscal year. Each city <br>shall annually prepare a financial statement in accordance with KRS 424.220 and <br>immediately forward one (1) copy to the Department for Local Government for <br>information purposes. The Department for Local Government shall be responsible <br>for forwarding one (1) copy of the financial statement to the Legislative Research <br>Commission to be used for the purposes of KRS 6.955 to 6.975.
(4) 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 <br>terms and conditions of the agreement which shall include but not be limited to <br>requirements that: <br>(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 <br>42.450 to 42.495. The auditor shall include a certification with the annual <br>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 <br>and auditing procedures considered necessary in the circumstances. Where the <br>audit is to cover the use of state or federal funds, appropriate state or federal <br>guidelines shall be utilized;
(d) The auditor prepare a typewritten or printed report embodying:
1.
The basic financial statements and accompanying supplemental and <br>required supplemental information;
2.
The auditor's opinion on the basic financial statements or reasons why <br>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 <br>Auditor of Public Accounts upon request of the city or the Auditor of Public <br>Accounts, and the Auditor of Public Accounts shall have the right to review <br>the certified public accountant's work papers upon request.
(5) 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 <br>financial data, except for statutory or judicial requirements, or requirements of the <br>Legislative Research Commission necessary to carry out the purposes of KRS 6.955 <br>to 6.975.
(6) 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 <br>containing: <br>(a) The auditor's opinion letter; <br>(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 <br>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 <br>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 <br>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 <br>the officer responsible for preparation of the statement.
(7) 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.
(8) 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 <br>officer who fails to comply with any of the provisions of this section shall, for each <br>failure, be subject to a forfeiture of not less than fifty dollars ($50) nor more than <br>five hundred dollars ($500), in the discretion of the court, which may be recovered <br>only once in a civil action brought by any resident of the city. The costs of all <br>proceedings, including a reasonable fee for the attorney of the resident bringing the <br>action, shall be assessed against the unsuccessful party.
Effective: July 15, 2010 <br>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 <br>ch. 8, sec. 2, effective July 12, 2006. -- Amended 2000 Ky. Acts ch. 89, sec. 1, <br>effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 69, sec. 46, effective July 15, <br>1998. -- Amended 1992 Ky. Acts ch. 33, sec. 4, effective July 14, 1992. -- Amended <br>1990 Ky. Acts ch. 52, sec. 1, effective July 13, 1990. -- Amended 1986 Ky. Acts <br>ch. 331, sec. 22, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 111, <br>sec. 173, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 393, sec. 45, <br>effective July 15, 1982; ch. 407, sec. 1, effective July 15, 1982; and ch. 430, sec. 1, <br>effective July 15, 1982. -- Created 1980 Ky. Acts ch. 232, sec. 4, effective July 15, <br>1980.
91A.040 Annual city audits -- Publication -- Contents -- Exception -- Penalties.
(1) 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 <br>certified public accountant. The audits shall be completed by February 1 <br>immediately following the fiscal year being audited. Within ten (10) days of the <br>completion of the audit and its presentation to the city legislative body, in <br>accordance with subsection (4)(e) of this section, each city shall forward three (3) <br>copies of the audit report to the Department for Local Government for information <br>purposes. The Department for Local Government shall forward one (1) copy of the <br>audit report to the Legislative Research Commission to be used for the purposes of <br>KRS 6.955 to 6.975.
(2) 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 <br>be audited by the Auditor of Public Accounts or a certified public accountant. The <br>audits shall be completed by February 1 immediately following the fiscal year to be <br>audited. Within ten (10) days of the completion of the audit and its presentation to <br>the city legislative body, in accordance with subsection (4)(e) of this section, each <br>sixth class city shall forward three (3) copies of the audit report to the Department <br>for Local Government for information purposes. The Department for Local <br>Government shall forward one (1) copy of the audit report to the Legislative <br>Research Commission to be used for the purposes of KRS 6.955 to 6.975. After the <br>close of each even-numbered fiscal year, each sixth class city shall prepare a <br>financial statement in accordance with KRS 424.220 and immediately forward one <br>(1) copy to the Department for Local Government, which shall forward one (1) copy <br>of the financial statement to the Legislative Research Commission.
(3) 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 <br>which has no long-term debt, whether general obligation or revenue debt, shall not <br>be required to audit each fund of the city for that particular fiscal year. Each city <br>shall annually prepare a financial statement in accordance with KRS 424.220 and <br>immediately forward one (1) copy to the Department for Local Government for <br>information purposes. The Department for Local Government shall be responsible <br>for forwarding one (1) copy of the financial statement to the Legislative Research <br>Commission to be used for the purposes of KRS 6.955 to 6.975.
(4) 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 <br>terms and conditions of the agreement which shall include but not be limited to <br>requirements that: <br>(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 <br>42.450 to 42.495. The auditor shall include a certification with the annual <br>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 <br>and auditing procedures considered necessary in the circumstances. Where the <br>audit is to cover the use of state or federal funds, appropriate state or federal <br>guidelines shall be utilized;
(d) The auditor prepare a typewritten or printed report embodying:
1.
The basic financial statements and accompanying supplemental and <br>required supplemental information;
2.
The auditor's opinion on the basic financial statements or reasons why <br>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 <br>Auditor of Public Accounts upon request of the city or the Auditor of Public <br>Accounts, and the Auditor of Public Accounts shall have the right to review <br>the certified public accountant's work papers upon request.
(5) 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 <br>financial data, except for statutory or judicial requirements, or requirements of the <br>Legislative Research Commission necessary to carry out the purposes of KRS 6.955 <br>to 6.975.
(6) 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 <br>containing: <br>(a) The auditor's opinion letter; <br>(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 <br>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 <br>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 <br>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 <br>the officer responsible for preparation of the statement.
(7) 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.
(8) 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 <br>officer who fails to comply with any of the provisions of this section shall, for each <br>failure, be subject to a forfeiture of not less than fifty dollars ($50) nor more than <br>five hundred dollars ($500), in the discretion of the court, which may be recovered <br>only once in a civil action brought by any resident of the city. The costs of all <br>proceedings, including a reasonable fee for the attorney of the resident bringing the <br>action, shall be assessed against the unsuccessful party.
Effective: July 15, 2010 <br>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 <br>ch. 8, sec. 2, effective July 12, 2006. -- Amended 2000 Ky. Acts ch. 89, sec. 1, <br>effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 69, sec. 46, effective July 15, <br>1998. -- Amended 1992 Ky. Acts ch. 33, sec. 4, effective July 14, 1992. -- Amended <br>1990 Ky. Acts ch. 52, sec. 1, effective July 13, 1990. -- Amended 1986 Ky. Acts <br>ch. 331, sec. 22, effective July 15, 1986. -- Amended 1984 Ky. Acts ch. 111, <br>sec. 173, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 393, sec. 45, <br>effective July 15, 1982; ch. 407, sec. 1, effective July 15, 1982; and ch. 430, sec. 1, <br>effective July 15, 1982. -- Created 1980 Ky. Acts ch. 232, sec. 4, effective July 15, <br>1980.
