There is more than one type of "Financial Statement"

 KRS 91A(1)(b) requires a city's books of account to be maintained so to fairly and fully disclosure the City's financial operations in conformity with generally accepted governmental accounting principles.

The Governmental Accounting Standards Board (GASB) is the recognized authority on generally accepted governmental accounting principles.

The first type of Financial Statement for city fiscal accounting is the type that is mandated by the GSAB. These Financial Statements are created monthly, quarterly, but at least annually by the city's treasurer or bookkeeper and these are the Financial Statements that an independent C.P.A. audits, as required by KRS 91A.040.

KRS 91A.040(6), however, specifically references two different types of Financial Statements. The first one is the type just discussed, GASB Financial Statements:

 KRS 91A.040(6) "Each city shall . . . publish . . . "

(c) A statement that a copy of the complete audit report, including financial statements and supplemental information, is on file at city hall and is available for public inspection during normal business hours;

But,  KRS 91A.040(6) also states:

(f) A statement that copies of the financial statement prepared in accordance with KRS 424.220 . . . are available to the public at no cost . . . .

 Thus, there are clearly two different types of Financial Statements cities are required to produce:

1. GASB Financial Statements, and; 
2. Financial Statement prepared in accordance with KRS 424.220

One or the other is not enough. Gotta have both.

KRS 424.990 provides the criminal and civil penalties imposed upon government officials personally for not complying with the financial reporting requirements of KRS 424.220.

Being trusted with public money is clearly not a job for amateurs. Having a competent lawyer helps too. 

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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.