KRS 367.948: Records of registrants.

Every registrant shall keep and maintain adequate records, including, but not limited to,

the following:

(1) A cash receipts journal, or its equivalent, listing moneys received in chronological

order. The journal shall contain dates of all such moneys rece ived, amounts

received, and identification of the purchasers;

(2) A cash disbursement journal, or its equivalent, containing the same information as

required by subsection (1) of this section for moneys disbursed; if a separate bank

account is kept exclusi vely for any such funds, the checkbook could be used as a

cash disbursement journal;

(3) A "reconciliation" done at least once every twelve (12) months. The reconciliation

shall indicate the beginning balance in the trust account, payments received during

the period, interest earned during the period, disbursements during the period, and

the ending balance for the period. The ending balance for each period is determined

as follows:

Beginning balance

+ Payments received

+ Interest

- Disbursements

Ending Balance

(4) All contracts, sales, trust fund, and accounting records of the registrant shall be

readily available at the registrant's principal place of business in this state at

reasonable times for examination by an authorized representative of the Attorney

General's office;

(5) (a) The necessary expenses of any reasonable examination made pursuant to this

section shall be paid by the registrant; but in no case shall the Attorney

General or his authorized representatives be paid more than the actual

expenses of such examination, not to exceed the lesser of the following

amounts: one hundred dollars ($100) per day for each auditor or five dollars

($5) for each registrant's sales contract examined. In any event, the cost of

such examination shall not e xceed a total of one thousand two hundred fifty

dollars ($1,250) during any twelve (12) month period;

(b) The registrant may pay for this expense using interest moneys which have

accrued on the registrant's existing cemetery merchandise trust fund accounts

or preconstruction trust fund account or perpetual care account. Any

withdrawal of interest for this purpose shall be taken as a pro rata share of all

of the trust fund accounts. The Attorney General shall be advised in writing by

the registrant when inte rest moneys are the source of payment and shall

receive written certification from the financial institution or registrant that the

withdrawal was a pro rata share;

(6) This section shall apply to examinations of all registrant's contracts.