{"data":{"id":"us-ky/krs-91a.044","jurisdiction":"us-ky","citation":"KRS 91A.044","heading":"Agreed -upon procedures engagements -- Requirements -- Contents --","body":"Publication requirements.\n(1) Beginning with fiscal years on and after July 1, 2027, a city required to complete an\naudit pursuant to the provisions of KRS 91A.040 may elect to  instead have an\nagreed-upon procedures engagement with either the Auditor of Public Accounts or\na certified public accountant under the provisions of this section.\n(2) A city shall meet the following conditions in order to proceed with an agreed -upon\nprocedures engagement under this section for a particular fiscal year:\n(a) Unless proceeding under subsection (9) of this section, the city shall have\ncomplied with any of the applicable requirements under KRS 91A.040 or this\nsection in the immediately preceding fiscal year;\n(b) The city has not been subject to a special examination from the Auditor of\nPublic Accounts during the immediately preceding fiscal year or during the\nfiscal year to be audited;\n(c) For the fiscal year subject to be audited, the city rec eived and expended from\nall sources and for all purposes less than fifteen million dollars ($15,000,000);\n(d) The city is not required by any other provision of state or federal law to\nperform an audit or examination more stringent than is required by this\nsection; and\n(e) The city shall meet any other standards and requirements not in conflict with\nthis subsection that may be established by the Auditor of Public Accounts\nthrough the promulgation of administrative regulations in accordance with\nKRS Chapter 13A.\n(3) An agreed -upon procedures engagement entered into by a city under this section\nshall be conducted and governed under the American Institute of Certified Public\nAccountants (AICPA) professional standards and any additional standards and\nrequirements established by administrative regulation promulgated in accordance\nwith KRS Chapter 13A by the Auditor of Public Accounts. Any agreed -upon\nprocedures engagement conducted for a city shall, at a minimum, examine and\nreport on:\n(a) Reconciliation of cash, including the recalculation of year -end bank\nreconciliations, confirmation of beginning and ending balances, and\nverification that reconciled bank balances agree to fund cash balances in the\naccounting system and financial statement;\n(b) Confirmation of cash balances directly with any external financial institutions;\n(c) Fund balances and transfers;\n(d) Inspection of investment holdings for compliance with applicable state law\nand any policies adopted by the city;\n(e) A statement of receipts and disbursements, including payroll disbursements;\n(f) Identification of outstanding debt, including confirmation of beginning and\nending balances, any new debt issuance or payments, amortization schedules,\nand compliance with debt terms;\n(g) Verification that total expenditures do not exceed appropriations; and\n(h) If applicable, an examination of local government ec onomic assistance funds\ngranted to the city under KRS 42.450 to 42.495 to ensure the funds were\nexpended for the purposes intended.\n(4) An agreed -upon procedures engagement performed under this section shall be\ncompleted by March 1 immediately following th e fiscal year being examined. A\ncopy of the agreed-upon procedures report shall be forwarded to the Department for\nLocal Government for informational purposes no later than April 1 immediately\nfollowing the fiscal year being examined. The Department for Lo cal Government\nshall, upon request, make available electronic copies of reports submitted to it under\nthis section to the Legislative Research Commission to be used for the purposes of\nKRS 6.955 to 6.975 and to the Auditor of Public Accounts if the Auditor  is not a\nparty to the agreed-upon procedures engagement.\n(5) Any city proceeding under this section to perform an agreed -upon procedures\nengagement in lieu of an audit shall enter into a contract with the Auditor of Public\nAccounts or a certified public a ccountant for the performance of that agreed -upon\nprocedures engagement. The contract's terms and conditions shall include but not\nbe limited to:\n(a) The Auditor of Public Accounts or the certified public accountant complete an\nagreed-upon procedures repor t in compliance with subsection (3) of this\nsection;\n(b) The completed agreed -upon procedures report shall be presented to the city\nlegislative body at a regular or special meeting; and\n(c) If the agreed -upon procedures engagement is completed by a certifi ed public\naccountant, that the Auditor of Public Accounts shall be allowed to review the\ncertified public accountant's work papers upon request.\n(6) A copy of an agreed -upon procedures engagement report which meets the\nrequirements of this section shall be  considered satisfactory and final in meeting\nany official request to a city for financial data, except as may be required by the\nKentucky Revised Statutes, including those under KRS 6.955 to 6.975, and any\njudicial requirements.\n(7) An agreed-upon procedures engagement report completed under this section shall\nbe deemed sufficient to meet any state law or administrative regulation that requires\nthe submission or completion of an audit.\n(8) Not later than thirty (30) days after the date on which the present ation of the\nagreed-upon procedures engagement report has been made to the city, the city shall\npublish an advertisement in accordance with KRS Chapter 424 that the agreed-upon\nprocedures engagement report has been completed for the city and that:\n(a) The complete report, along with supplemental information, is available for\ninspection at city hall during normal business hours; and\n(b) Any citizen may obtain from city hall a copy of the completed agreed -upon\nprocedures engagement report for personal use at a duplication cost not\nexceeding twenty-five cents ($0.25) per page.\n(9) A city that is two (2) or more fiscal years behind in completing or reporting under\nKRS 91A.040 or 424.220 may make an application to the Department for Local\nGovernment to proceed un der this section with a single agreed -upon procedures\nengagement to bring the city into compliance for those fiscal years. The Department\nfor Local Government shall prescribe any requirements, conditions, and other terms\nfor using the process authorized un der this subsection by administrative regulation\npromulgated in accordance with KRS Chapter 13A. Once completed, the\nDepartment for Local Government shall treat the city as compliant with the\nrequirements it had previously failed to meet under KRS 91A.040 or 424.220.\n(10) A city shall forward a copy of any agreed -upon procedures engagement report\ncompleted pursuant to this section to the Auditor of Public Accounts upon request.","path":["KRS Chapter 91A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57564","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:49Z","sha256":"850e8e04dedcb90a9a2e074e597daba6c2f36f0c477d23625c8d229398516c50","source_id":"us-ky","stale":false,"prev":"us-ky/krs-91a.041","next":"us-ky/krs-91a.045"},"notice":"GroundRules: Original legal text. Not legal advice."}