KRS 154.40-060: Use of revenues and funds -- Annual audit.

(1) All revenues derived by the corporation from the use of Eastern Kentucky

Exposition Center, all contributions to the center from other sources, and any

revenues derived by the corporation from any other source shall be used solely for

the expenses of the c enter, including payment on debt; the cost of management and

operation of its facilities; the creation of an adequate reserve for repair,

replacement, debt service, and capital improvements; the procurement of insurance;

and promotional activities.

(2) Unless an election is made pursuant to the provisions of subsection (3) of this

section, the Auditor of Public Accounts shall conduct an annual audit of all funds of

the corporation and its affiliated entities, if any, and report annually to the Governor

and the Legislative Research Commission.

(3) (a) In lieu of having the Auditor of Public Accounts perform the annual audit

under subsection (2) of this section:

1. A city government that appoints members to the board of the

corporation may make an irrevocable election upon written notice to the

Auditor of Public Accounts that it shall include the corporation within

the city's annual audit conducted under the provisions of KRS 91A.040.

A city making an election pursuant to this subparagraph shall be

reimbursed by the corporation for the direct costs it incurs as a result of

the inclusion of the corporation within its annual audit; or

2. Upon written notification to the Auditor of Public Accounts, a city

government meeting the requirements of subparagraph 1. of th is

paragraph and the board may jointly elect to have its annual audit

performed by an independent auditor. Any audit performed by an

independent auditor for the corporation shall be generally conducted and

conform to the requirements of KRS 91A.040(6).

(b) If an audit is performed under this subsection, the audit shall be forwarded to

the Auditor of Public Accounts.