KRS 164A.565: Accrual basis accounting system -- Other records -- Annual report --

Budgets, financial statements, and meetings information to be publicly

available on Web site.

(1) The governing board of each postsecondary educational institution making the

election authorized in KRS 164A.560 shall as a condition of such election install an

accrual basis accounting system conforming with generally accepted accounting

principles and procedures established for colleges and universities by the National

Association of College and University Business Officers and the American Institute

of Certified Public Accountants. The accounting system shall include but not be

limited to the following fund structure:

(a) An operating fund group (unrestricted current funds), consisting of all moneys

not otherwise restricted, available for general operations, including state

appropriations, federal funds, and unrestricted institutional receipts. Separate

accounting fund groups may be established for auxiliary enterprises, athletics,

hospitals, and other similar operations;

(b) A restricted fund group consisting of appropriations and other receipts

restricted as to purpose which shall not be included in the operating fund;

(c) A loan fund group consisting of gifts, grants, and other funds provided and

available for loans to students;

(d) An endowment fund group consisting of funds, the principal of which is not

currently expendable;

(e) An agency fund group consisting of resources held by the institutions as

custodian or fiscal agent for i ndividual students, faculty, staff members, and

organizations;

(f) A plant fund group consisting of:

1. Unexpended plant funds to be used for the acquisition of long -lived

assets for institutional purposes (capital construction funds);

2. Funds for renewal , maintenance, and replacement of institutional

buildings, equipment, and other properties; and

3. Funds set aside for debt service charges and retirement of indebtedness

on institutional plant.

(2) A record of each general fund appropriation shall be maintained so as to identify the

institutional budgets to which such funds are allotted. Any uncommitted state

general funds remaining after the close of business on the last day of the fiscal year

shall lapse and be returned to the Treasury of the Commonwealt h. Each

appropriation shall be used for the intended purpose and where questions of intent

arise subject to the provisions of KRS 45.750 and 45.800 in the case of capital

construction projects and major items of equipment as defined by these sections, the

decision of the secretary of finance and administration, based upon budget work

papers, shall be final.

(3) A separate account showing sources of revenue and all expenditures shall be

maintained for each capital construction project. At the end of each fis cal year, a

report containing a listing of all capital construction projects, with sources of funds,

expenditures, and current status for each, shall be submitted to the Capital Projects

and Bond Oversight Committee.

(4) Within thirty (30) days after July 15, 1982, the secretary of the Finance and

Administration Cabinet shall submit to the Capital Projects and Bond Oversight

Committee a complete record of all funds and project records transferred to

institutions under the provisions of KRS 164A.555 to 164A.630.

(5) Within thirty (30) days after July 15, 1982, the governing boards shall submit to the

Capital Projects and Bond Oversight Committee a report containing a complete list

of capital construction projects and unexpended plant funds in existence on July 15,

1982. The source of funds, expenditures, and current status of each project shall be

shown.

(6) State general funds appropriated by the General Assembly for capital construction

projects and equipment purchases as d efined in KRS 45.750 through 45.800 shall

not lapse at the end of a fiscal year. They shall be carried forward until the project is

completed. Any such unexpended funds remaining after acceptance of the project as

complete shall be returned to a surplus ac count of the capital construction fund for

investment until appropriated and allotted as provided in KRS 45.750 through

45.800.

(7) Long lived assets of the institution, including land, buildings, and capital equipment

shall be accounted for in the plant fund group.

(8) The governing boards of each institution shall make an annual report of the

financial activity to the Council on Postsecondary Education. The report shall meet

the requirements of the council's system of uniform financial reporting for

institutions of higher education.

(9) By January 1, 2012, the governing boards of each institution shall make available

on the institution's Web site:

(a) The board -approved operating and capital budgets for the current and prior

two (2) fiscal years;

(b) The institution's audited financial statements for the previous three (3) fiscal

years; and

(c) The agendas and actions of all meetings of the governing board for the

previous three (3) years.