KRS 42.0201: Office of the Controller.

(1) There is created within the Finance and Administration Cabinet the Office of the

Controller.

(2) The Office of the Controller shall be headed by an executive director appointed by

the secretary of the Finance and Administration Cabinet with the approval of the

Governor. The executive director shall function as the state controller, who shall be

a person qualified by education and experience for the position and held in high

professional esteem in the accounting community.

(3) The state controller shall be t he Commonwealth's chief accounting officer and shall

be responsible for all aspects of accounting policies and procedures, financial

accounting systems, and internal accounting control policies and procedures. The

Office of the Controller shall establish g uidelines for state personnel administration

on issues relating to paycheck distribution dates, assignment of data elements to

accurately report labor costs, assignment and tracking of actual expenditures by

code, and coverage issues relating to Social Security and Medicare.

(4) The state controller; the executive director of the Office of Financial Management,

Finance and Administration Cabinet; and the state budget director designated under

KRS 11.068 shall develop and maintain the Commonwealth's strategi c financial

management program.

(5) Executive directors and division directors appointed under this section shall be

appointed by the secretary with the approval of the Governor.

(6) There are established in the Office of the Controller the following organ izational

entities:

(a) The Office of Financial Management, which shall be headed by an executive

director, shall have the duties and responsibilities established in KRS 42.410,

and shall serve as administrative staff to the Turnpike Authority of Kentucky.

The executive director shall serve as secretary to the authority;

(b) The Office of Material and Procurement Services, which shall be headed by

an executive director and shall have the duties established in KRS 42.024.

There are established within the Off ice of Material and Procurement Services

the following organizational entities:

1. The Division of Professional Services and Training, which shall be

headed by a division director who is appointed by the secretary of the

Finance and Administration Cabinet pursuant to KRS 12.050, and who

shall report to the executive director; and

2. The Division of Contract Management, which shall be headed by a

division director who is appointed by the secretary of the Finance and

Administration Cabinet pursuant to KRS 12.050, and who shall report to

the executive director;

(c) The Division of Local Government Services, which shall be headed by a

division director and shall be responsible for:

1. Providing property valuation administrators with fiscal, personnel,

payroll, training, and other essential administrative support services;

2. Overseeing Kentucky's Social Security coverage program, including but

not limited to all aspects of FICA wage reporting for state government

and the Commonwealth's Social Security coverage agreement;

3. Serving as liaison between local governments and the federal Internal

Revenue Service and Social Security Administration;

4. Serving as the payroll and fiscal officer for the sheriff and clerk in

counties over seventy thousand (70,000) in population, disbursing

various reimbursements and expenditures to loca l governments and

serving as liaison and conduit for all court fees associated with report of

state money through the Circuit Courts;

5. Directing the federal employment tax program for state employees; and

6. Performing state government's duties relating to the county fee system

for local entities;

(d) The Office of Statewide Accounting Services, headed by an executive director

appointed by the secretary of the Finance and Administration Cabinet, subject

to the approval of the Governor. The executive direc tor shall report directly to

the state controller. The office shall perform financial record keeping

functions at the state controller's direction, and shall be responsible for the

performance of the cabinet's functions outlined in KRS 45.305, 48.800, and

other related statutes. There is established within the Office of Statewide

Accounting Services the Division of Customer Resource Center, which shall

be headed by a division director appointed by the secretary pursuant to KRS

12.050 and who shall report to the executive director of the Office of

Statewide Accounting Services. The division shall be responsible for:

1. Providing a help desk for users of state government's financial and

procurement system, including state employee users and vendors and

payees of the Commonwealth who do, or would like to do, business with

the state;

2. Training state employees in the use of state government's financial and

procurement system; and

3. Assisting cabinet entities in improving the quality of their products and

processes; and

(e) The Division of State Risk and Insurance Services, headed by a division

director appointed by the secretary of the Finance and Administration Cabinet,

subject to the approval of the Governor. The director shall report directly to

the state controller and shall have the duties specified in KRS 42.0651.