Tuesday, May 3, 2016

Parsing KRS 424.220 - Financial Statements 0.03

This is the third part of a series following after part two:

Parsing KRS 424.220 - Financial Statements 0.02

The Financial Statement required by KRS 424.220 is divided into three parts:
  1. Funds received;
  2. Funds held, and;
  3. Funds expended.
KRS 424.220(2) and (3) set out specific requirements for the itemized contents of the Financial Statement. KRS 424.220 (4) applies only to school districts and teacher salaries.

KRS 424.220(2)(a) mandates the Financial Statement shall show, "[t]he total amount of funds collected and received during the fiscal year from each individual source;"

A  typical Kentucky municipality receives funds from many different income sources during the course of a year. Basic bookkeeping practice records each receipt of funds in an appropriate journal entry, depending upon the reason for the funds being received.

Reporting the funds received from each "individual source" would be interpreted, most simply,  to mean general funding categories such as property taxes, state road aid, borrowing, etc. That seems to be the common accepted practice.


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

A division of Accountable Kentucky Incorporated
a Kentucky Non-profit corporation
AccountableKY.org

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

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