KRS 45.121: Examination of claims -- Preaudit by budget unit -- Compromise of claims.

(1) The Finance and Administration Cabinet shall examine all authorizations for

payment presented, and if it finds them correct shall file them and issue warrants

upon the State Treasurer. The Finance and Administration Cabinet shall not certify

any claim to the State Treasurer until it is satisfied that there is in the appropriation

to the budget unit against which the claim is chargeable, a sufficient amount to pay

the claim. The Finance and Administration Cabinet may rely on the preaudit

performed by a budget unit as a basis for issuing a warrant.

(2) The Finance and Administration Cabinet, the Chief Justice, and the Legislative

Research Commission with the approval of the Attorney General, may authorize the

compromise of any disputed claim by or against their respective branches of

government. In the event of a claim against the Commonwealth which cannot be

ascribed to a particular branch of government or budget unit thereof, with the

approval of the Attorney General, it may be compromised by agreement a mong

them.