Request By:
Mr. Charles R. Simpson, III
Attorney at Law
Suite 601, Legal Arts Building
200 South Seventh Street
Louisville, Kentucky 40202
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Walter C. Herdman, Assistant Deputy Attorney General
This is in response to your letter of July 14, in which you refer to OAG 82-350 which concerns the audit and publication requirements of cities of the sixth class pursuant to 1982 legislation. You state that since our response in OAG 82-350 indicates that KRS 91A.040 no longer requires a city of the sixth class to obtain an audit, though one has already been prepared, you believe it is unnecessary for the city to go to the expense of publishing the audit or mailing it to city residents as provided in KRS 424.190(2). You ask whether or not we agree with this conclusion and our response would be in the negative.
As pointed out in the referred to opinion every city must prepare an annual audit except sixth class cities which must prepare its audit every two years following the term of legislative body members pursuant to KRS 91A.040(1) and (2). Upon completion of city audits, KRS 91A.040 (6) requires all cities to either publish the auditor's report according to the requirements of subsection (7) or publish a financial statement according to the requirements of subsection (8). Subsection (9) of KRS 91A.040 authorizes fifth and sixth class cities to utilize the Alternative publication method of their audits provided for under KRS 424.190(2) mentioned in the referred to opinion.
It is true that KRS 91A.041 does permit cities expending from all sources and for all purposes less than $25,000 for any fiscal year to publish a financial statement pursuant to KRS 424.220 in lieu of preparing an audit as required by KRS 91A.040 (1) and (2); however, they must do one or the other.
Under the circumstances a city of the sixth class must continue to prepare an audit and publish it either under the terms of subsections (7), (8) or (9) of KRS 91A.040 unless the city qualifies under the provisions of 91A.041, in which case it may in lieu of preparing an audit publish a financial statement pursuant to KRS 424.220. Thus, since the city has already prepared an audit, it should either utilize the alternative publication method under KRS 424.190(2) to which you refer or the publication requirements authorized by KRS 91A.041 if it qualifies, or publish the audit as provided in subsections (7) and (8) of KRS 91A.040.