Kentucky County Treasurer’s Fundamentals Course

1. Kentucky County Treasurer’s Fundamentals Course Handling Public Funds April 23, 2015 http://www.kactfo.com Slide 1 of 12

2. Kentucky County Treasurer’s Fundamentals Course Handling Public Funds • Minimum Requirements Pursuant to KRS 68.210 for • All Local Government Officials and Employees: • All systems must comply by at least utilizing the cash basis of accounting. • Bonding of all officials & employees who handle public funds for an amount covering the maximum amount they may have under their control at one time. Sworn deputies should be included under the official’s bond. • Daily deposits intact into a federally insured banking institution. • Monthly bank reconciliation. http://www.lrc.ky.gov/statutes/statute.aspx?id=24083 April 23, 2015 http://www.kactfo.com Slide 2 of 12

3. Kentucky County Treasurer’s Fundamentals Course Handling Public Funds • Minimum Requirements Pursuant to KRS 68.210 for • All Local Government Officials and Employees: • Disbursements by check only. • No bonuses, no prepayment for good or services, and no contributions.(Section 3, Kentucky Constitution) • Books of original entry for receipts and expenditures and/or utilization of daily cash check-out sheets. • Preparation of an annual budget showing estimated receipts and expenditures. • Fixed asset documentation (Inventory) http://www.lrc.ky.gov/statutes/statute.aspx?id=24083 April 23, 2015 http://www.kactfo.com Slide 3 of 12

4. Kentucky County Treasurer’s Fundamentals Course Handling Public Funds • Minimum Requirements Pursuant to KRS 64.840 for • All Local Government Officials and Employees: • Pre-numbered three-part receipt forms should be issued for all receipts. Original to be given to payer, copy to be attached in sequential order to daily cash check-out or daily deposit record, and copy to remain in file. Voiced receipts should be so marked, copies one and two kept in numerical order with check-out records, and copy three remaining in file. http://www.lrc.ky.gov/statutes/statute.aspx?id=23311 April 23, 2015 http://www.kactfo.com Slide 4 of 12

5. Kentucky County Treasurer’s Fundamentals Course Handling Public Funds • Minimum Requirements Pursuant to KRS 64.850 for • All Local Government Officials and Employees: • Personal funds must be kept separate from public funds. It shall be unlawful for any county official to deposit public funds with individual or private funds in any bank or other depository or for any such official to withdraw public funds for any purpose other than that for which they were received and deposited. April 23, 2015 http://www.kactfo.com Slide 5 of 12

6. Kentucky County Treasurer’s Fundamentals Course Handling Public Funds • Minimum Requirements Pursuant to KRS 66.480 for • All Local Government Officials and Employees: • All investments must follow the investment policy • adopted by the local government • The governing body of a city, county, urban-county, charter county, school district (provided that its general procedure for action is approved by the Kentucky Board of Education), or other local governmental unit or political subdivision, may invest and reinvest money subject to its control and jurisdiction in: • Obligations of the United States and of its agencies and instrumentalities, including obligations subject to repurchase agreements, if delivery of these obligations subject to repurchase agreements is taken either directly or through an authorized custodian. (cont.) http://www.lrc.ky.gov/statutes/statute.aspx?id=23630 April 23, 2015 http://www.kactfo.com Slide 6 of 12

7. Kentucky County Treasurer’s Fundamentals Course Handling Public Funds • Minimum Requirements Pursuant to • KRS 424.220 and 91A.040(6) for All • Local Government Officials and Employees: • Annual financial statement prepared and portions of annual audit published. Excepting officers of a city of the first class or a consolidated local government, a county containing such a city or consolidated local government, a public agency of such a city, consolidated local government, or county, or a joint agency of such a city, consolidated local government, and county, or of a school district of such a city, consolidated local government, or county, and excepting officers of a city of the second class or an urban-county government, every public officer of any school district, city, consolidated local government, county, ...(cont.) http://www.lrc.ky.gov/statutes/statute.aspx?id=39700 http://www.lrc.ky.gov/statutes/statute.aspx?id=25562 April 23, 2015 http://www.kactfo.com Slide 7 of 12

8. Kentucky County Treasurer’s Fundamentals Course Handling Public Funds • Minimum Requirements Pursuant to KRS 424.260 for • All Local Government Officials and Employees: • Advertisement for competitive bids prior to purchases exceeding $20,000. Except where a statute specifically fixes a larger sum as the minimum for a requirement of advertisement for bids, no city, county, or district, or board or commission of a city or county, or sheriff or county clerk, may make a contract, lease, or other agreement for materials, supplies except perishable meat, fish, and vegetables, equipment, or for contractual services other than professional, involving an expenditure of more than twenty thousand dollars ($20,000) without first making newspaper advertisement for bids. If the fiscal court requires that the sheriff or county clerk advertise for bids on expenditures of less than twenty thousand dollars ($20,000), the fiscal court requirement shall prevail.(cont.) http://www.lrc.ky.gov/statutes/statute.aspx?id=18264 April 23, 2015 http://www.kactfo.com Slide 8 of 12

9. Kentucky County Treasurer’s Fundamentals Course Handling Public Funds • Minimum Requirements Pursuant to KRS 68.275 for • All Local Government Officials and Employees: • Claims must be reviewed by fiscal court. Claims against the county that are within the amount of line items of the county budget and arise pursuant to contracts duly authorized by the fiscal court shall be paid by the county judge/executive by a warrant drawn on the county and co-signed by the county treasurer. The county judge/executive shall present all claims to the fiscal court for review prior to payment and the court, for good cause shown, may order that a claim not be paid. (cont.) http://www.lrc.ky.gov/statutes/statute.aspx?id=24096 April 23, 2015 http://www.kactfo.com Slide 9 of 12

10. Kentucky County Treasurer’s Fundamentals Course Handling Public Funds • Strongly Recommended For All Local Government Officials Handling Public Funds • Purchase order system. (Requirement for fiscal courts) • Interest bearing accounts. • Perfected pledge of securities covering all public funds except direct federal obligations and funds protected by federal insurance. Safety should be the primary concern with all investments. April 23, 2015 http://www.kactfo.com Slide 10 of 12

11. This is to certify that, on this day, Thursday, April 23, 2015 FIRST LAST Has successfully completed the Kentucky County Treasurer’s Fundamentals Course Handling Public Funds Tammy Robertson K.A.C.T.F.O. President http://www.kactfo.com