UNOFFICIAL COPY 22 RS BR 2136
Page 1 of 2
XXXX Jacketed
AN ACT relating to financial disclosures of postsecondary education institutions. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘SECTION 1. A NEW SECTION OF KRS CHAPTER 164 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) No later than July 1 of each year, the president or chief executive officer of each 5
state institution or independent institution that is licensed or overseen by the 6
Council on Postsecondary Education, and the chair of the governing board of 7
each institution, shall jointly execute a signed, sworn statement attesting to 8
whether the institution: 9
(a) In sound financial standing with a stable financial base to support the 10
mission of the institution and the scope of its programs and services; 11
(b) Underwent an institutional audit for the most recent fiscal year prepared by 12
an independent certified public accountant or appropriate government 13
auditing agency employing the appropriate audit guide; and 14
(c) Has an annual budget that is preceded by sound planning, subject to sound 15
fiscal procedures, and approved by the president of the institution and the 16
chair of the governing board. 17
(2) Each institution shall provide the sworn statement required by subsection (1) of 18
this section to the president of the Council on Postsecondary Education, the 19
chairs of the Budget Review Subcommittee on Education of the Interim Joint 20
Committee on Appropriations and Revenue, and the co-chairs of the Interim 21
Joint Committee on Appropriations and Revenue. 22
(3) If an institution fails to provide a statement as required by subsection (2) of this 23
section, the Council on Postsecondary Education shall have the authority to 24
conduct an investigation and request any financial documentation necessary to 25
inform a report on the financial data required by subsection (1) of this section. 26
The Council shall report its findings to the chairs of the Budget Review 27 UNOFFICIAL COPY 22 RS BR 2136
Page 2 of 2
XXXX Jacketed
Subcommittee on Education of the Interim Joint Committee on Appropriations 1
and Revenue and the co-chairs of the Interim Joint Committee on Appropriations 2
and Revenue. 3