Kentucky Administrative Regulations
Title 702 - EDUCATION AND WORKFORCE DEVELOPMENT CABINET - BOARD OF EDUCATION, DEPARTMENT OF EDUCATION - OFFICE OF DISTRICT SUPPORT SERVICES
Chapter 3 - School Administration and Finance
Section 702 KAR 3:130 - Internal accounting

Universal Citation: 702 KY Admin Regs Service 3:130

Current through Register Vol. 50, No. 9, March 1, 2024

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

NECESSITY, FUNCTION, AND CONFORMITY: KRS 156.070(1) requires the Kentucky Board of Education to manage and control 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" means all school funds including funds derived from fundraising activities sponsored under the auspices of the school and does not mean funds raised or received by organizations that do not come under the direct supervision of school authorities.

Section 2. District Responsibilities.

(1) A district board of education shall have the responsibility for administration and control of all activity funds and comply with "Accounting Procedures for Kentucky School Activity Funds", which is also known as the "Redbook".

(2)
(a) The March 2013 edition of the Redbook shall be used through July 31, 2019.

(b) The August 2019 edition of the Redbook shall be used beginning on August 1, 2019.

Section 3. Audits.

(1) Activity fund internal accounts shall be audited annually by a certified public accountant, and a report shall be made to the district board of education.

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

(3) Recommendations and exceptions listed in the audit shall be reviewed by staff of the Department 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. It shall be open for public inspection in both locations.

Section 4. Incorporation by Reference.

(1) "Accounting Procedures for Kentucky School Activity Funds", August 2019, is incorporated by reference.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Department of Education, Division of District Support, 300 Sower Boulevard, 4th Floor, Frankfort, Kentucky, Monday through Friday, 8 a.m. to 4:30 p.m.

STATUTORY AUTHORITY: KRS 156.070, 156.160, 156.200

Disclaimer: These regulations may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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