Kentucky Administrative Regulations
Title 304 - TOURISM, ARTS AND HERITAGE CABINET - DEPARTMENT OF PARKS
Chapter 1 - Parks and Campgrounds
Section 304 KAR 1:010 - Accounting procedures
Universal Citation: 304 KY Admin Regs Service 1:010
Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 148.021
NECESSITY, FUNCTION, AND CONFORMITY: In order to control and evaluate the business activities of its various licensees the Department of Parks finds it necessary to prescribe certain accounting procedures to be used by its licensees. This administrative regulation will enable the Department of Parks to evaluate the records and operation of its licensees' businesses.
Section 1. Accounting Records.
(1) Prior to commencing business or
upon written notice, licensees shall obtain the services of a Certified Public
Accountant or a firm of Certified Public Accountants for the purposes of
developing an accounting system including a system of internal controls
covering all business operations conducted upon the premises covered by the
license agreement in order to maintain accurate financial records and books
relating to the licensee's operation. The accounting system developed shall
meet the specific approval of the Department of Parks. All cash registers,
receipt documents, contracts, and other means of supporting a cash or income
transaction shall meet the specific approval of the Department of Parks. The
licensee shall bear all expenses related to development of an accounting and
internal control system including cash registers, receipt forms, and rental
contract documents.
(2) The system
used to record income must be in sufficient detail to disclose the amount of
income derived from each category of business conducted on the premises in
order to facilitate compliance with rental consideration provisions under the
license agreement. A complete income chart of accounts proposed for use and the
rate of rental consideration due from each source shall be submitted as a part
of the accounting system study as set out in subsection (1) of this
section.
Section 2. Audit of Records.
(1) Each licensee shall
provide for an annual examination of the statement of assets, liabilities, and
capital income and expenses performed by an independent Certified Public
Accountant or firm of Certified Public Accountants. The examination must
include a review of the system of internal control and the accounting of
year-end closing procedures and other supporting evidences necessary for the
expression of an opinion on the financial statements. A written memorandum
shall be made setting forth the weaknesses, if any be ascertained, in internal
control and accounting procedures together with related suggestions for the
improvement thereof as noted during the normal review of internal control. A
statement shall be made in the audits as to compliance or noncompliance with
the provisions of license agreement and all related rules and administrative
regulations pertaining thereto.
(2)
The audit report and memorandum must include the names of the Commissioner of
Parks and the Commissioner of the Executive Department for Finance and
Administration in the address.
(3)
The audit and review of internal controls shall be performed annually as of the
close of business on the day corresponding with the end of the licensees'
fiscal year. The audit report and accompanying memorandum must be submitted to
the Commissioner of Parks and the Commissioner of the Executive Department for
Finance and Administration on or before the 15th day of the fourth month
following the close of the licensee's fiscal year.
(4) Included as a part of the audit record
required in this section shall be a schedule which sets out the names and
addresses of all partners whether silent, active, or limited participating in
licensee's business operation authorized by license agreement if licensee is
partnership, or the names and addresses of all corporation officers and
stockholders, if stock not publicly held, if licensee if
incorporated.
(5) The licensee
shall file with the Department of Parks a statement setting out the date on
which he intends to end his fiscal year.
(6) The licensee shall bear all expenses
connected with the audit examinations outlined in this administrative
regulation.
STATUTORY AUTHORITY: KRS Chapter 13A
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