{"data":{"id":"us-ky/krs-45.305","jurisdiction":"us-ky","citation":"KRS 45.305","heading":"Accounting system -- Fund structure.","body":"(1) The Finance and Administration Cabinet shall install a unified and integrated\nsystem of accounts for the state which shall comply with generally accepted\naccounting principles, and which shall be in addition to other accounts required by\nthis chapter, and which shall include:\n(a) A set of budgetary control accounts for each fund, comprising an account with\nthe available cash of the fund, an account with the budget estimate of the\namount of money to be derived from each source of revenue and nonrevenue\nreceipts, an account with the total of the unallotted balances of appropriations,\nan account with the total of the free balances of allotments, an account with\nthe total commitments under allotments, and an account with the estimated\ncash surplus or deficit, so as to show at all times the status of the budget fund.\n(b) A subsidiary appropriation ledger for each fund from which appropriations are\nmade, embracing an account with each appropriation, and designed to show\nthe budget unit to which the appropriation wa s made, the purpose of the\nappropriation, the amount appropriated, the additions to the appropriation, the\nallotments from the appropriation, the unallotted balance of the appropriation,\nthe commitments charged to allotments, and the free balances of the t otal\namount allotted.\n(c) A set of general controlling proprietary and operating accounts for each fund,\nso as to record the transactions to the fund in summary form and to show the\nactual current assets, prepaid expenses, current liabilities, deferred cre dits to\nincome, reserves, actual income, actual expenditures, and the current surplus\nor deficit.\n(d) A uniform classification of the sources of revenue and nonrevenue receipts.\n(e) Standard classifications of the expenditures of the budget units.\n(f) A standard classification of the budget units.\n(g) Such other accounts, records, and devices as the Finance and Administration\nCabinet deems necessary for the production of needed information respecting\nfinancial condition, financial operations and costs.\n(2) The accounts provided for in paragraphs (a), (b) and (c) of subsection (1) of this\nsection or summary records shall be maintained by the Finance and Administration\nCabinet.\n(3) The Finance and Administration Cabinet shall keep controlling accounts with\nreceipts, payments, and state depositories. The cabinet shall obtain from the State\nTreasurer the figures for the entries required to open the accounts, and thereafter it\nshall obtain the information required for the keeping of the accounts from deposits,\nlists of warrants drawn under appropriations, and vouchers requesting transfers of\ndeposits among state depositories.\n(4) The accounting system prescribed and installed by the Finance and Administration\nCabinet shall provide for the settlement of transactions  between budget units by\nmaking debit and credit entries on the books of the cabinet on the basis of adequate\nexpenditure vouchers, without the issuance of warrants.\n(5) The accounting system prescribed and installed by the Finance and Administration\nCabinet shall include the following fund classifications:\n(a) Governmental fund: This classification shall include those funds through\nwhich most governmental functions typically are financed including, but not\nlimited to, the general fund, the road fund, bond debt related fund, federal\nfund, agency receipts funds, and the capital construction fund.\n(b) Proprietary fund: This classification shall account for governmental activities\nwhich are similar to those activities found in the private sector. Activities\nwhich provide services to other governmental units and activities which\nprovide services principally to the private sector are included.\n(c) Fiduciary fund: This classification shall account for assets held by a\ngovernmental unit in a trustee capacity or as an agent for individuals, private\norganizations, other governmental units, or other funds. These include\nexpendable trust funds, nonexpenda ble trust funds, pension trust funds and\nagency funds.\n(d) Loan fund: This classification shall account for funds advanced or to be\nadvanced to other governments, other governmental agencies, or private\norganizations or individuals.\n(6) Account groups. In order to establish accounting control and accountability for\ngeneral fixed assets and the unmatured principal of general long -term debt, a\ngeneral fixed assets account group and a general long -term debt account group may\nbe established.","path":["KRS Chapter 45"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22230","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:05Z","sha256":"07b40bd56e93fdf0afa8483cece6789d9752d50f927cf406c92bbfb2b5e57a26","source_id":"us-ky","stale":false,"prev":"us-ky/krs-45.301","next":"us-ky/krs-45.306"},"notice":"GroundRules: Original legal text. Not legal advice."}