AN ACT relating to the fiscal reporting of local entities.

Amend KRS 65A.030 to increase the fiscal reporting levels of special purpose governmental entities; allow entities conducting yearly audits to move to an audit every 4 years if the entity receives 2 sequential audit reports with unqualified opinions and report the fact that the entity is operating under the alternative audit schedule to the Department for Local Government; require an entity to have yearly audits if the entity receives anything but an unqualified audit opinion…

Introduced: January 29, 2026

Last action: February 5, 2026

To Local Government (H)

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This bill changes how certain local government bodies in Kentucky report and audit their finances. It would allow some smaller government entities to conduct audits every four years instead of every year, as long as they have a clean financial record, while still requiring annual audits if problems are found. It also streamlines how county clerks handle audits of vehicle-related taxes and clarifies the financial handoff process when a county official leaves office unexpectedly. Who it may affect: local government agencies and special districts, county clerks, and area planning commissions and sanitation districts across Kentucky.

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