Bill > HB171

This bill amends Kentucky laws related to special purpose governmental entities and fire departments by increasing financial thresholds for auditing and financial reporting requirements. Specifically, the bill raises the threshold for mandatory financial statements and audits from $100,000 to $150,000 for smaller entities, and from $500,000 to $700,000 for larger entities. For special purpose governmental entities and fire districts, this means entities with annual receipts or expenditures below $150,000 will need to prepare annual financial statements and undergo an attestation engagement every four years, while those between $150,000 and $700,000 will need more comprehensive financial reviews, and those above $700,000 will require annual audits. The bill also makes minor technical changes to language regarding regulatory procedures and reporting, such as updating references to website spelling and administrative regulation language. These changes aim to reduce administrative burden on smaller governmental entities while maintaining financial transparency and accountability. The new requirements will take effect on July 1, 2026, giving entities time to prepare for the updated financial reporting standards.

Government Affairs

https://apps.legislature.ky.gov/record/25RS/hb171.html