702 KAR 3:130. Internal accounting.

 

      RELATES TO: KRS Chapter 45A, 61.410, 66.480, 156.029, 156.076, 156.160, 156.200, 158.290, 160, 161.540, 161.560, 342.640, 424.260

      STATUTORY AUTHORITY: KRS 156.070, 156.160

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 156.070(1) gives the Kentucky Board of Education the management and control of the common schools. KRS 156.200 requires the Kentucky Board of Education to regulate accounting procedures and reports of local school districts. This administrative regulation establishes uniform procedures for the accounting of school activity funds.

 

      Section 1. Definition. "Activity funds":

      (1) Means all school funds including funds derived from fund raising activities sponsored under the auspices of the school; and

      (2) Does not mean funds raised or received by organizations which do not come under the direct supervision of school authorities.

 

      Section 2. A district board of education shall:

      (1) Have the responsibility for administration and control of all activity funds; and

      (2) Comply with "Accounting Procedures for Kentucky School Activity Funds".

 

      Section 3. (1) Activity funds internal accounts shall be audited annually by a certified public accountant.

      (2) Audit reports shall be reviewed and accepted by the local board and appropriate action taken.

      (3) Recommendations and exceptions listed in the audit shall be reviewed by staff of the Department of Education, and a report shall be made to the district Board of Education.

      (4) A copy of the school audit report shall be on file in both the office of the principal and the office of the superintendent of the local school district where it shall be open for public inspection.

 

      Section 4. Incorporation by Reference. (1) "Accounting Procedures for Kentucky School Activity Funds", August 2007, is incorporated by reference.

      (2) This document may be inspected, copied, or obtained, subject to applicable copyright law, at the Department of Education, Office of District Support Services, 15th Floor, Capital Plaza Tower, 500 Mero Street, Frankfort, Kentucky, Monday through Friday, 8 a.m. to 4:30 p.m. (SBE 21.250, 21.260, 21.270, 21.280, 21.290, 21.295, 21.300, 21.305; 1 Ky.R. 71; eff. 11-13-1974; Am. 5 Ky.R. 816; eff. 6-6-1979; 6 Ky.R. 581; eff. 7-2-1980; 17 Ky.R. 428; 1353; eff. 10-14-1990; 20 Ky.R. 1684; eff. 2-2-1994; 21 Ky.R. 2244; eff. 6-1-1995; 23 Ky.R. 185; eff. 9-5-1996; 28 Ky.R. 1204; 1633; eff. 1-14-2002; 34 Ky.R. 1800; 2092; eff. 4-4-2008.)