{"data":{"id":"us-ky/krs-65.065","jurisdiction":"us-ky","citation":"KRS 65.065","heading":"Budgets -- Application only to fiscal periods ending before July 1, 2014 --","body":"Transition to requirements of KRS 65A.010 to 65A.090 -- Filing -- Financial\nstatements -- Audits -- Enforcement.\n(1) The provisions of this section shall apply for fiscal perio ds ending prior to July 1,\n2014. For fiscal periods beginning on or after July 1, 2014, the provisions of this\nsection shall no longer apply; instead, the provisions of KRS 65A.010 to 65A.090\nshall apply. Districts shall cooperate with the Department for L ocal Government\nand the Auditor of Public Accounts to ensure an orderly transition from the\nreporting requirements of this section to the reporting requirements of KRS\n65A.010 to 65A.090. Notwithstanding the dates established by this subsection, the\nprovisions of this section and KRS 65A.010 to 65A.090 shall be administered such\nthat the registration required by KRS 65A.090(1) occurs as required by that\nsubsection, and there is no gap in reporting by entities subject to this section and\nKRS 65A.010 to 65A.090 as the transition occurs.\n(2) The governing body of each district shall annually prepare a budget and, as\nappropriate, shall classify budget units in the same fashion as county budgets are\nclassified in accordance with KRS 68.240(2) to (5). The state lo cal finance officer\nshall prepare standard budget forms for district use and shall furnish them to county\nclerks for distribution to district officers. No moneys shall be expended from any\nfunds or any sources, except in accordance with the budget which ha s been filed\nwith the fiscal court to be available for public inspection. No budget of a district\nshall become effective until filed with the fiscal court of the county in which the\ndistrict is located for submission to the Department for Local Government.  For\nthose districts with multicounty jurisdictions, the district shall file a copy with each\nof the fiscal courts within the jurisdiction of the district for their review. If the\nbudget is not filed with the fiscal court at least thirty (30) days prior to  the start of\nthe district fiscal year, the fiscal court shall immediately notify the county attorney.\nThe county attorney shall then notify the governing board of the special district of\nthe noncompliance and then proceed with any steps necessary to preve nt the\nexpenditure of funds by the special district until the district is in compliance.\n(3) The governing body of each district which for the year in question receives from all\nsources or expends for all purposes less than seven hundred fifty thousand dol lars\n($750,000) shall annually prepare a financial statement, except that once every four\n(4) years the district's governing body shall provide for the performance of an audit\nas provided in subsection (5) of this section.\n(4) The governing body of each district which for the year in question receives from all\nsources or expends for all purposes seven hundred fifty thousand dollars ($750,000)\nor more shall provide for the performance of an annual audit as provided in\nsubsection (5) of this section.\n(5) To provide for the performance of an audit, the governing body of a district shall\nemploy an independent certified public accountant or contract with the Auditor of\nPublic Accounts to perform an audit of the funds in the district budget. The audit\nshall conform to:\n(a) Generally accepted governmental auditing standards, which means those\nstandards for audits of governmental organizations, programs, activities, and\nfunctions issued by the Comptroller General of the United States; and\n(b) Additional procedures an d reporting requirements as may be required by the\nAuditor of Public Accounts. A unit of government furnishing funds directly to\na district may require additional audits at its own expense. Upon request, the\nState Auditor of Public Accounts may review the final report and all related\nwork papers and documents of the independent certified public accountant\nrelating to the audit. If a district is required by law to audit its funds more\noften than is required by this section, it shall perform those audits and may\nsubmit them in lieu of the requirements of this section, if the audits meet the\nrequirements of this subsection.\n(6) The provisions of subsection (3) of this section shall not apply to any district that is\nrequired by law to annually submit a financial  report to an agency of state\ngovernment. The districts shall annually submit a copy of their financial report to\nthe county judge/executive and to the state local finance officer and once every four\n(4) years provide for the performance of an audit as pro vided in subsection (5) of\nthis section.\n(7) Any resident of the district may bring an action in the Circuit Court to enforce the\nprovisions of this section. The Circuit Court shall hear the action and, on a finding\nthat the governing body of the district has violated the provisions of this section,\nshall order the district to comply with the provisions. The Circuit Court, in its\ndiscretion, may allow the prevailing party, other than the district, a reasonable\nattorney's fee and court costs, to be paid from the district's treasury.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=41692","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:20Z","sha256":"2d48a4ed20aabb871bef8dc2f3c4cee3d573bebd217cf66bb7a788510c6d0626","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.060","next":"us-ky/krs-65.066"},"notice":"GroundRules: Original legal text. Not legal advice."}