KRS 64.810: Annual audit of books of fiscal court or county office by certified public

accountant, if auditor declines to perform audit -- Procedure.

(1) (a) Any fiscal court, county clerk, or sheriff may employ a certified public

accountant to audit the books, ac counts, and papers of the county or his office

in lieu of the audit conducted by the State Auditor of Public Accounts

required by KRS 43.070, if the Auditor of Public Accounts declines to

perform the audit or has failed to respond to written notice of inte nt to employ

a certified public accountant within thirty (30) days of receipt of the notice.

(b) In the case of a documented emergency requiring an immediate audit which

the Auditor of Public Accounts cannot complete within the requested

deadline, the Audi tor of Public Accounts shall authorize the fiscal court, the

county clerk, or sheriff to engage a certified public accountant to complete the

emergency audit. A certified public accountant may be engaged to conduct an

emergency audit only after guaranteein g in writing to the Auditor of Public

Accounts that the audit and audit report will be finished within the deadline

originally requested of the Auditor of Public Accounts. The fiscal court shall

bear the full cost of any county audit conducted pursuant to this paragraph.

The county clerk or the sheriff shall bear the full cost of any audit of his office

conducted pursuant to this paragraph, from funds received or collected by

him, and the cost of the audit shall be construed as an expense of his office.

Audits conducted pursuant to this paragraph shall be subject to the provisions

of subsections (4) and (5) of this section.

(2) A fiscal court which has elected to employ a certified public accountant pursuant to

subsection (1)(a) of this section shall notify the State Auditor in writing by July 31

following the fiscal year to be audited of the name of the certified public accountant

it has employed. The fiscal court shall bear the full cost of any audit conducted

pursuant to this section. An elected official w ho has elected to employ a certified

public accountant pursuant to subsection (1)(a) of this section shall:

(a) Notify the fiscal court and the State Auditor in writing by January 30

following the calendar year to be audited of the name of the certified pu blic

accountant employed by said official to audit the books, accounts, and papers

of his office; and

(b) Bear the cost of the audit from funds received or collected by him, and the

cost of the audit shall be construed as an expense of his office.

(3) Any contract with a certified public accountant entered into pursuant to subsection

(1)(a) of this section shall specify the following:

(a) The audit of a county official shall be completed by August 1 following the

calendar year being audited, and the audit o f a county budget shall be

completed by February 1 following the fiscal year being audited;

(b) The certified public accountant shall forward a copy of the fee officer audit

report and management letters to the county official, fiscal court of the county,

and the Auditor of Public Accounts upon completion of the audit, and no later

than August 1 following the calendar year being audited;

(c) The certified public accountant shall forward a copy of the county budget

audit report and management letters to the fiscal court of the county and the

Auditor of Public Accounts upon completion of the audit and no later than

February 1 following the fiscal year being audited; and

(d) The Auditor of Public Accounts shall have the right to review the certified

public accountant's work papers before and after the release of the audit.

(4) After preliminary review of the certified public accountant's work papers, should

discrepancies be found, the Auditor of Public Accounts shall notify the fiscal court

or fee official of th e discrepancies. Should the certified public accountant not

correct such discrepancies prior to the release of the audit, the Auditor's office may

conduct its own audit to verify the findings of the certified public accountant's

report. If such audit is co nducted, the expenses to said county or county official, as

directed by KRS 43.070(4) shall be construed as an allowable expense of office. If

the audit conducted by the Auditor of Public Accounts discloses discrepancies in

the audit by the certified publi c accountant, the findings of the Auditor of Public

Accounts shall be deemed official for purposes of collection of money owed the

county pursuant to KRS 64.820.

(5) No later than February 1 following the fiscal year being audited, or August 1

following the calendar year being audited, the fiscal court or county official shall

submit the accountant's written report to the Governor, the General Assembly, the

Attorney General, the State Librarian, and county attorney of his county. In addition

the fiscal cour t or the official shall send the report to the newspaper having the

largest paid circulation in the county, and the letter of transmittal accompanying the

report shall be published in said newspaper in accordance with the provisions of

KRS Chapter 424.

(6) This section shall not be construed as eliminating the requirement that the books,

accounts, and papers of the above-named officials be audited yearly.