{"data":{"id":"us-ky/krs-43.073","jurisdiction":"us-ky","citation":"KRS 43.073","heading":"Annual audit of school district entity by Auditor or private accountant --","body":"Expenses -- Review of private audit by Auditor.\n(1) The Auditor of Public Accounts shall be responsible for an annual audit of the\nfunds contained in each school district cooper ative, school district consortium,\nschool district corporation, and any other entity formed by school districts in an\nagreement made pursuant to KRS 65.210 to 65.300, with the cost of the audit to be\nborne by the audited entity.\n(2) A school district cooperative, school district consortium, school district corporation,\nor other entity formed by school districts in an agreement made pursuant to KRS\n65.210 to 65.300 may employ a certified public accountant to audit the books,\naccounts, and papers of the coope rative, consortium, corporation, or other entity in\nlieu of the audit required by subsection (1) of this section, if the Auditor of Public\nAccounts declines in writing to assume responsibility for performing the audit or\nfails to respond in writing within thirty (30) days of receiving the cooperative's,\nconsortium's, corporation's, or other entity's written notice of its intent to employ a\ncertified public accountant to conduct the audit. The cooperative, consortium,\ncorporation, or other entity shall not e nter into any contract with a certified public\naccountant for an audit unless the Auditor of Public Accounts has declined in\nwriting to assume responsibility for performing the audit or has failed to respond\nwithin thirty (30) days of receipt of a written request for an audit.\n(3) (a) Any contract with a certified public accountant entered into as a result of the\nAuditor of Public Accounts either declining to assume responsibility of\nperforming the audit or failing to respond within thirty (30) days of rece ipt of\na written request for an audit shall specify the following:\n1. That the certified public accountant shall forward a copy of the audit\nreport and management letters to the Auditor of Public Accounts for\nreview;\n2. That the Auditor of Public Accounts shall have the right to review the\ncertified public accountant's work papers before and after the release of\nthe audit; and\n3. That after review of the certified public accountant's work papers, if\ndiscrepancies are found, the Auditor of Public Accounts sh all notify the\naudited entity of the discrepancies. If the certified public accountant\ndoes not correct these discrepancies prior to the release of the audit, the\nAuditor of Public Accounts may conduct its own audit to verify the\nfindings of the certified public accountant's report.\n(b) If an audit verifying the findings of the certified public accountant's report is\nconducted by the Auditor of Public Accounts, the total audit expense incurred\nby the audited entity shall be an allowable expenditure and shall be paid by the\naudited entity to the Auditor of Public Accounts. If the audit conducted by the\nAuditor of Public Accounts discloses discrepancies in the audit by the\ncertified public accountant, the findings of the Auditor of Public Accounts\nshall be deemed official for all purposes.","path":["KRS Chapter 43"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22118","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:03Z","sha256":"25cdfa6a5743ba42091538669811191dd7408a80db6b54d9da516059ee275746","source_id":"us-ky","stale":false,"prev":"us-ky/krs-43.071","next":"us-ky/krs-43.075"},"notice":"GroundRules: Original legal text. Not legal advice."}