KRS 43.050: General functions of Auditor.

(1) The Auditor constitutes an agency independent of the administrative departments

enumerated in KRS 12.020, it being the policy of the General Assembly to provide

for the independent auditing of the accounts, financial transactions, and

performance of all sp ending agencies of the state through a disinterested auditor,

who is entirely independent of the state administration whose affairs he is called

upon to audit.

(2) The Auditor may:

(a) Audit annually, and at such other times as may be deemed expedient, the

accounts of all state agencies, all private and semiprivate agencies receiving

state aid or having responsibility for the handling of any state funds, the

accounts, records, and transactions of the budget units, and the general

accounts of the state;

(b) Make a complete audit and verification of all moneys handled for the account

of the state government by local officials charged with the collection of fees

or other money for or on behalf of the state, when an audit is demanded in

writing by the Legislative Research Commission, the secretary of the Finance

and Administration Cabinet, or the Governor, and may make an audit when it

is not so demanded;

(c) Examine periodically the performance, management, conduct, and condition

of all asylums, prisons, institu tions for the intellectually disabled, and

eleemosynary institutions; public works owned, operated, or partly owned by

the state, or in the conduct or management of which the state has any financial

interest or legal power; and state agencies. The examinat ions shall give

special attention to the faithful and economical application of any money

appropriated by the state to the institution, public works, or state agency

examined, or of any money in which the state has an interest;

(d) Examine annually the management and condition of the offices of the Finance

and Administration Cabinet, the State Treasurer, and the chief state school

officer, to determine whether the laws regulating their duties are being fully

complied with, and all money received by them for the state fully accounted

for;

(e) Examine, at least biennially, the Finance and Administration Cabinet's

compliance with this section and KRS 48.111 and 56.800 to 56.823. Within

sixty (60) days of the completion of each examination, the Auditor shall

report his findings and recommendations to the Capital Projects and Bond

Oversight Committee;

(f) Audit periodically all state revenue collections, and, if he finds that

collections are not being satisfactorily made, report that fact to the authority

whose duty it is to make the collections;

(g) Make special audits and investigations when required by the Governor;

(h) Investigate the means of accounting for, controlling, and insuring the safe

custody of all property of the state, and verify the existence and c ondition of

such property charged to, or held in the custody of any state agency;

(i) Audit the statements of financial condition and operations of the state

government, and certify in writing the results of the audit and examination

with the comments he deems necessary for the information of the General

Assembly;

(j) Report immediately in writing to the Governor, the Legislative Research

Commission, and the secretary of the Finance and Administration Cabinet,

any unauthorized, illegal, irregular, or unsafe handling or expenditure of state

funds, or other improper practice of financial admin istration, or evidence that

any such handling, expenditure, or practice is contemplated, and any

obstruction of the Auditor or his agents during the conduct of any audit or

investigation of a state agency; and

(k) Assist the Legislative Research Commission at hearings and investigations

conducted by it and cooperate with the Legislative Research Commission in

the preparation of its reports to the General Assembly.

(3) The Auditor may investigate and examine into the conduct of all state and county

officers who are authorized to receive, collect, or disburse any money for the state,

or who manage or control any property belonging to the state or in which the state

is interested, or who make estimates or records that are used as a basis by any state

agency in the disbursement of public funds.

(4) The Auditor may conduct a special audit or examination of a city government or

any of its agencies or departments.

(5) The Auditor may receive appropriations from the general fund for audits of the

statewide systems of personnel and payroll, cash and investments, revenue

collection, and the state accounting system. Except where otherwise provided, any

expenses incurred by the Auditor for any other audit, examination, investigation, or

review, including a required audit of federal funds, shall be charged to the entity

that is the subject of the audit, examination, investigation, or review. The Auditor

shall maintain a record of all time expenses for each audit, examination,

investigation, or review.

(6) The Auditor may provide consulting services, in accordance with auditing standards

generally accepted in the United States and government auditing standards, to state

or local government entities and associations of such entities, including special

purpose governmental enti ties, and may charge a mutually agreed upon rate for

those services, including:

(a) Providing training and technical presentations;

(b) Developing audit guides applicable to those entities;

(c) Developing question and answer documents to promote understand ing of

technical issues or standards; and

(d) Collaborating with other professional organizations to advance auditing of

government entities and programs.

(7) The Auditor shall not be responsible for the keeping of any accounts of the state,

except accounts relating to his own operations. The Auditor shall not be responsible

for the collection of any money due the state, or for the handling or custody of any

state funds or property except in the process of counting and verifying the amounts

of the funds or property in the course of the audits provided for in this section.