summary
Introduced
02/12/2026
02/12/2026
In Committee
02/23/2026
02/23/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Amend KRS 91A.020 to allow cities bringing in or expending less than $15 million to conform to cash, modified accrual, or budgetary basis of accounting rather than generally accepted governmental accounting principles; amend KRS 91A.040 to allow cities bringing in or expending less than $500,000 to perform an agreed-upon procedures engagement for the fifth fiscal year in which the city remains in that fiscal category, and require cities conducting an audit to contract with an auditor to examine the basic financial statements that include financial statements prepared under the basis of accounting used by the city; require each city to publish an advertisement containing a budget-to-actual comparison schedule for the general fund and remove the publication requirement for copies be available at no cost; require the city to make a copy of the audit report available to the Auditor of Public Accounts; amend KRS 424.220 to make conforming amendments and require a city to publish a financial statement within 30, rather than 90 days after submission to the Department for Local Government; exempt from the publication requirements officers of cities that have completed an audit under KRS 91A.040 and cities that have completed an agreed-upon procedures engagement; create a new section of KRS Chapter 91A to allow cities to complete an agreed-upon procedures engagement with the Auditor of Public Accounts or a certified public accountant rather than an audit if the city meets certain requirements; establish standards for the agreed-upon procedures engagement process; establish reporting, advertising and access requirements; direct that the Department for Local Government may permit a city to use this process under certain circumstances when the city has not completed and reported an audit for 2 or more fiscal years.
AI Summary
This bill modifies financial reporting requirements for cities, particularly smaller ones, by allowing those with less than $15 million in revenue or expenditures to use simpler accounting methods like cash or budgetary basis instead of generally accepted governmental accounting principles. For cities with less than $500,000 in revenue and expenditures, the bill introduces an "agreed-upon procedures engagement" as an alternative to a full audit for the fifth consecutive year they qualify for this exemption, which involves specific checks and balances performed by a certified public accountant or the Auditor of Public Accounts. It also requires cities to publish a budget-to-actual comparison for their general fund and shortens the timeframe for publishing financial statements from 90 to 30 days after submission to the Department for Local Government, while exempting cities that have completed an audit or an agreed-upon procedures engagement from certain publication requirements. Additionally, the bill allows cities that are two or more years behind on their reporting to use a single agreed-upon procedures engagement to catch up, with the Department for Local Government having the discretion to permit this under certain circumstances.
Committee Categories
Government Affairs
Sponsors (2)
Last Action
Senate Committee On State And Local Government (11:00:00 2/25/2026 Annex Room 131) (on 02/25/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://apps.legislature.ky.gov/record/26RS/sb192.html |
| BillText | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/sb192/orig_bill.pdf |
| Local Mandate Fiscal Impact | https://apps.legislature.ky.gov/recorddocuments/note/26RS/sb192/LM.pdf |
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