KRS 91A.020: Accounting records.

(1) Each city shall keep its accounting records and render financial reports in such a

way as to:

(a) Determine compliance with statutory provisions;

(b) Determine fairly and with full disclosure the financial operations of

constituent funds and account groups of the city; and

(c) Conform with generally accepted governmental accounting principles, except

cities receiving and expending, from all sources and for all purposes, less than

fifteen million dollars ($15,000,000) may choose to conform with the cash or

the modified cash basis of accounting.

(2) Municipal accounting systems shall be organized and operated on a fund basis.