KRS 41.070: Moneys to be deposited in state depositories -- Exceptions -- Designated

depositories -- Records of agencies.

(1) Unless otherwise expressly provided by law, no receipts from any source of state

money or money for which the state is responsibl e shall be held, used, or deposited

in any personal or special bank account, temporarily or otherwise, by any agent or

employee of any budget unit, to meet expenditures or for any other purpose.

(2) All receipts of any character of any budget unit, all rev enue collected for the state,

and all public money and dues to the state shall be deposited in state depositories in

the most prompt and cost -efficient manner available. However in the case of state

departments or agencies located outside Frankfort, and al l state institutions, the

Finance and Administration Cabinet may permit temporary deposits to be made to

the accounts maintained by the agency, department, or institution in a state

depository for a period not to exceed thirty (30) days, and may require th at the

money be forwarded to the State Treasury at the time and in the manner and form

prescribed by the cabinet. Nothing in this section shall be construed as authorizing

any representative of any agency, department, or institution to enforce or cash, eve n

for the purpose of a deposit, any check or other instrument of value payable to the

Commonwealth or any agency thereof.

(3) Each agency depositing its receipts directly with the State Treasurer shall do so in

the manner approved by the State Treasurer as agent in charge of public fund

deposits.

(4) The Department of Revenue may deposit receipts to the credit of the State Treasury

directly with a state depository utilized by the Commonwealth for its primary

banking services. The State Treasurer, with the a pproval of the Finance and

Administration Cabinet, may authorize other agencies to deposit receipts directly

with a state depository to the credit of the State Treasury if the Treasurer prescribes

the manner in which the deposit is to be made, and the form s and reports to be filed

with the Treasury Department. The Finance and Administration Cabinet shall

prescribe the forms and reports to be filed with it when this type of deposit is made.

(5) Each department, agency, or other budget unit which receives fun ds to be deposited

into the State Treasury shall maintain records to report adequately each amount

received, from whom received, and date received. Agency records shall be easily

reconcilable with the information forwarded to the State Treasurer.