KRS 45.031: Federal funds -- State clearinghouse function.

(1) Any department, board, commission, agency, advisory council, interstate compact,

corporate body, or instrumentality of the Commonwealth of Kentucky applying for

federal funds, aids, loans, or grants shall file a summary notification of the intended

application with the Department for Local Government in accordance with the

existing A-95 procedures.

(2) When as a condition to receiving federal funds, the Commonwealth of Kentucky is

required to match the federal funds, a statement shall be filed with the noti ce of

intent or summary of the application stating:

(a) The amount and source of state funds needed for matching purposes;

(b) The length of time the matching funds shall be required;

(c) The growth of the program;

(d) How the program will be evaluated;

(e) What action will be necessary should the federal funds be canceled, curtailed,

or restricted; and

(f) Any other financial and program management data required by the Finance

and Administration Cabinet or by law.

(3) Any application for federal funds, aid s, loans, or grants which will require state

matching or replacement funds at the time of application or at any time in the

future, must be approved by the secretary of the Finance and Administration

Cabinet, the Legislative Research Commission, and the Ch ief Justice for their

respective branches of government or their designated agents prior to its filing with

the appropriate federal agency. Any application for federal funds, aids, loans, or

grants which will require state matching or replacement funds at the time of

application or at any time in the future, when funds have not been appropriated for

that express purpose, must be approved by the General Assembly, if in session.

When the General Assembly is not in session, the application shall be reported to

and reviewed by the Interim Joint Committee on Appropriations and Revenue, as

provided by KRS 48.500(3).

(4) When any federal funds, aids, loans, or grants are received by any department,

board, commission or agency of the Commonwealth of Kentucky, a repo rt of the

amount of funds received shall be filed with the Finance and Administration

Cabinet; and this report shall specify the amount of funds which would reimburse

an agency for indirect costs as provided for under OMB Circular A-87.

(5) The secretary o f the Finance and Administration Cabinet may refuse to issue his

warrant for the disbursement of any state or federal funds from the State Treasury as

the result of any application which is not approved as provided by this section, or in

regard to which the statement or reports required by this section were not filed.

(6) The secretary of the Finance and Administration Cabinet shall be responsible for the

orderly administration of this section and for issuing the appropriate guidelines and

regulations from each source of fund used.