KRS 45.251: Expenditures -- Scope -- Methodology -- Recordkeeping.

(1) Expenditures shall be limited to the amounts and purposes for which appropriations

are made. All expenditures shall be reflected in the unified and integrated system of

accounts as provided by KRS 45.305.

(2) The Finance and Administration Cabinet shall pr escribe all information technology

standards, system attributes, and components to be used in, or in conjunction with,

the unified accounting system. The components must be consistent with

Commonwealth standards contained within the information technology architecture,

as provided by the Commonwealth Office of Technology.

(3) The Governor, the Chief Justice, and the Legislative Research Commission shall

designate the officer or employee authorized to approve advices of employment,

purchase orders and contra cts, and requisitions for reservation of funds, and no

advice, order, contract, or requisition shall be honored as a commitment statement

unless the designation has been conveyed to the Finance and Administration

Cabinet.

(4) The Finance and Administration Cabinet may approve for payment any expenditure

presented by a budget unit, provided that the Finance and Administration Cabinet is

able to determine that the expenditure is to satisfy a liability of the Commonwealth

of Kentucky created on behalf of that budget unit in fulfilling the governmental

function assigned to that budget unit and that the expenditure is being made from

the unexpended balance of a proper allotment.

(5) Subsidiary records shall be maintained to report the financial operation and

condition of each budget unit. These subsidiary records shall be compatible with the

unified accounting system prescribed by subsection (1) of this section and by KRS

45.305, and may be on the accrual basis or cash basis. Expenditures may be by prior

encumbrances or by straight disbursements. The subsidiary records may be

maintained by the Finance and Administration Cabinet and by the budget unit

involved. When a budget unit is authorized to maintain subsidiary records, the

Finance and Administration Cabinet shall have authority to prescribe the accounting

and preauditing procedures. The unified system of accounts shall conform to

accepted management and accounting principles.