45 KAR 1:040. Audits of county fee
officials.
RELATES TO: KRS 43.070, 43.075, 64.530,
64.810, 68.210
STATUTORY AUTHORITY: KRS 43.075
NECESSITY, FUNCTION, AND CONFORMITY: KRS
43.075 requires the Auditor of Public Accounts to promulgate administrative regulations
developing uniform standards and procedures for conducting, and uniform formats
for reporting, audits of counties and elected county officials. This
administrative regulation establishes the auditing standards, procedures, and
formats for county fee officials’ audits.
Section 1. Definition. "Generally
accepted government auditing standards" means the "Government
Auditing Standards" issued by the Comptroller General of the United
States.
Section 2. Auditing Standards,
Procedures, and Formats. The financial and compliance audit of the funds
administered by each county fee official shall be conducted and reported in
accordance with:
(1) Auditing standards generally accepted
in the United States of America, referenced in 201 KAR 1:300, Section 5(1)(a);
(2) Generally accepted government
auditing standards, referenced in 201 KAR 1:300, Section 5(1)(b); and
(3) The "Audit Guide for County Fee
Officials," issued by the Auditor of Public Accounts.
Section 3. Auditor’s Independent
Judgment. The requirements of this administrative regulation shall not be
interpreted in a manner that restricts the independent judgment of a certified
public accountant or the Auditor of Public Accounts.
Section 4. Audit Objective. (1) The
primary objective of an audit of a fee official shall be an audit report that
provides an opinion on whether the financial statements of the fee official
present fairly, in all material respects, the receipts, disbursements, and
excess fees.
(2) An auditor shall make tests
sufficient to determine whether:
(a) The fee official has complied with
the requirements of the uniform system of accounts adopted under KRS 64.530 and
68.210;
(b) Receipts have been accurately
recorded by source;
(c) Expenditures have been accurately
recorded by payee; and
(d) The fee official has complied with
all other legal requirements relating to the management of public funds by his
or her office.
Section 5. Allowance of Audit Fees;
Acceptance of Report. (1) Fees for county fee officials’ audits shall be allowable
as reasonable and necessary expenses of a county or county fee official if the
independent accountant's examination has been performed and reported in
compliance with the standards, procedures, and formats promulgated by this
administrative regulation.
(2) A fee official shall obtain written
approval of an audit report from the Auditor of Public Accounts prior to the:
(a) Release of an audit report; and
(b) Payment of fees for a fee officials'
audit.
(3) Failure by an independent certified
public accountant to comply with the "Audit Guide for County Fee Officials" and this
administrative regulation shall disqualify him or her from conducting fee
officials’ audits.
Section 6. Incorporation by Reference.
(1) The "Audit Guide for County Fee Officials," Auditor of Public
Accounts, September 15, 2006, is incorporated by reference.
(2) This document may be inspected,
copied, or obtained, subject to applicable copyright law, at the office of the
Auditor of Public Accounts, 105 Sea Hero Road, Suite 2, Frankfort, Kentucky
40601, Monday through Friday, 8 a.m. to 4:30 p.m. (18 Ky.R. 1693; Am. 2196; eff. 1-10-92; 22 Ky.R. 1327; eff. 3-7-96; 31
Ky.R. 787; 1050; eff. 1-4-2005; 33 Ky.R. 1423; 2-2-07.)