Tuesday, May 3, 2016

Parsing KRS 424.220 - Financial Statements 0.02

This is the second part of a series following after part one, 

Parsing KRS 424.220 - Financial Statements 0.01

 Who must comply with KRS 424.220?  

Every public officer of a city, etc., "whose duty it is to collect, receive, have the custody, control, or disbursement of public funds," and every officer of any board or commission whose duty it is to, "collect, receive, have the custody, control, or disbursement of funds collected from the public in the form of rates, charges, or assessments for services or benefits."

These are three broad categories. One individual public officer may have responsibility for each of the three, or the collecting, holding and disbursing functions may be distributed among several public officials. .
  1. Collect or receive public funds;
  2. Have the custody or control of public funds, or;
  3. Disburse public funds
The focus of the statute and the financial report it requires is upon public funds. No mention is made of real property or tangible personal property. The subject is liquid assets received, held or disbursed. As a plural noun, "funds" has the common business meaning of readily available financial resources in general, including cash in hand and bank balances. A line of credit or a revolving credit account, such as a typical credit card, neatly fits the general definition of "funds" as readily available financial resources, even if credit card debt seems the opposite of cash on hand. They spend nearly the same, but the credit card is easier to use. 

The singular "fund" has a slightly different meaning.A singular fund is a sum of money saved or made available for a particular purpose. In this, the singular is more abstract than is the plural.

The word fund can also be used as a verb, with the abstract meaning of allocating financial resources as a bookkeeping transaction or a budget ordinance. The specific meaning implies an actual transfer of money. 

What type of report is required of the public officer?

In general, "[A]n itemized, sworn statement of the funds collected, received, held, or disbursed by him during the fiscal year just closed, unless he has complied with KRS 424.230."

The Financial Statement required by KRS 424.220 is divided into three parts:
  1. Receipts;
  2. Holdings, and;
  3. Expenditures.

Next Part

Tom Fox, J. D.
Southern Specialty Law Publishing Company
Louisville, Kentucky

A division of Accountable Kentucky Incorporated
a Kentucky Non-profit corporation

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This is not legal advice and I am not a lawyer.

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