KRS 164.096: Postsecondary institutions -- Annual sworn financial disclosure statement.

(1) (a) No later than June 30 of each year, the president or chief executive officer of

each state institution or independent institution that is licensed or overseen by

the Council on Postsecondary Education, and the chair of the governing board

of each institution, shall jointly execute a signed, sworn statement attesting to

whether the institution:

1. Was in sound financial standing with a stable financial base to su pport

the mission of the institution and the scope of its programs and services

during the previous fiscal year;

2. Underwent an institutional audit for the most recent fiscal year prepared

by an independent certified public accountant or appropriate government

auditing agency employing the appropriate audit guide during the

previous fiscal year; and

3. Has an annual budget for the upcoming fiscal year that is preceded by

sound planning, subject to sound fiscal procedures, and approved by the

president of the institution and the chair of the governing board.

(b) In executing the statement required by paragraph (a) of this subsection, a

president or chief executive officer and chair of the governing board of an

institution may reasonably rely upon the representations of an employee of the

institution that is responsible for the financial management and accounting of

the institution, including the treasurer or chief financial officer of the

institution, and external financial service providers.

(2) Each institution shall provide the sworn statement required by subsection (1) of this

section to the president of the Council on Postsecondary Education, the chairs of the

Budget Review Subcommittee on Education of the Interim Joint Committee on

Appropriations and Rev enue, and the co -chairs of the Interim Joint Committee on

Appropriations and Revenue.

(3) If an institution fails to provide a statement as required by subsection (2) of this

section, the Council on Postsecondary Education shall have the authority to conduct

an investigation and request any financial documentation necessary to inform a

report on the financial data required by subsection (1) of this section. The council

shall report its findings to the chairs of the Budget Review Subcommittee on

Education of the Interim Joint Committee on Appropriations and Revenue and the

co-chairs of the Interim Joint Committee on Appropriations and Revenue.