Request By:
Hon. Herbert M. O'Reilly
Breckinridge County Attorney
P. O. Box 539
Hardinsburg, Kentucky 40143
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
In a recent letter to you we dealt with matters relating to the county "checkbook. " However, in view of the actual accounting practice now installed in Kentucky, we believe it is necessary to write this opinion to clarify the procedure for Kentucky fiscal courts.
Upon consultation with the State Auditor's Office, the Department for Local Government has issued a manual labeled "Uniform System of Accounts for Kentucky Counties."
Under that prescribed system, the claims against the county, when approved by an order of fiscal court, are physically placed in the possession of the County Judge Executive. See KRS 67.710(1), (5) and (6), 68.210, 68.220, 68.230, 68.240, 68.350, and 68.360.
Each county has pre-printed a form, which is a combination of a warrant (a document stating in effect that a particular person is entitled to be paid a certain sum for services rendered or goods furnished the county) and a check (a negotiable instrument) . In handling such approved claims, the County Judge Executive has a supply of such serially numbered warrant-check forms, which forms he fills out for the applicable payees. The County Judge Executive must sign the documents as co-signer with the County Treasurer pursuant to KRS 68.020(1). He records (by reducing the balance) the payment documents in his budget appropriations and bank balances books. See KRS 68.360. He retains a copy of each payment document in his files.
Next, the County Judge, after signing the payment documents, sends such payment documents to the County Treasurer, who checks his (the treasurer's) appropriations ledger and check register for available balances. KRS 68.020 and 68.360(1). If the money is actually available to pay the claim (after checking the budget account number), and if the treasurer has documentary proof that fiscal court has approved the claim for payment [a copy of the minutes or fiscal court order will suffice], the treasurer then signs the check. KRS 68.020(1). After posting (reduce balance) a copy of the check in the budget ledger and the check register, and retaining a copy of the check, the County Treasurer has the responsibility for seeing to it that the check is delivered to the proper payee. KRS 68.020.
The County Treasurer must keep a "check register" under each county budget fund, which will accurately reflect the available county bank balance under each county budget fund.
It is our opinion that the accounting system described above is a valid implementation of the pertinent statutes. See KRS 68.020.
The County Treasurer is required to keep a "check register, " as mentioned above, not a "checkbook" as usually and conventionally kept by private individuals.
The payment instrument for claimants is a combination of a warrant and a check, which, when fully filled out and signed by the County Judge Executive and signed by the County Treasurer, becomes a negotiable instrument. See KRS 355.3-104.
Under this accounting procedure, it is necessary that the County Judge Executive initiate the matter of filling out the warrant-check form. KRS 67.710.
It is important to keep in mind that the County Treasurer, while being custodian of the county funds, is primarily a ministerial and disbursing officer. The Treasurer is without power to question the authority of the fiscal court in the approval of claims, except when the warrant shows on its face that it is illegal, and except where the treasurer's records [budget records and bank records] reflect that there is not enough money to pay the claim, or that it exceeds the Constitutional limit, or that it is not drawn for governmental purposes.