154A.130 Deposit of moneys -- Expenditures and investments authorized --
1,085 words·~5 min read·
/ky/154a-130A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Allocation of funds -- Transfer of revenues to general fund -- Lottery trust
account -- Credit from general fund to literacy fund and higher education
scholarships -- Postaudit of corporation's books and records -- Functions of
Auditor of Public Accounts -- Annual newspaper publication of information.
(1)All money received by the corporation from the sale of lottery tickets and all other
sources shall be deposited into a corporate operating account. The corporation is
authorized to use all money in the corporate operating account for the purposes of
paying prizes and the necessary expenses of the corporation and dividends to the
state. The corporation shall allocate the amount to be paid by the corporation to
prize winners. The amount in the corporate operating account which the corporation
anticipates will be available for the payment of prizes on an annuity basis may be
invested in direct United States Treasury obligations. These instruments may be in
varying maturities with respect to payment of annuities and may be in book-entry
form. Monthly, no later than the last business day of the succeeding month, the
corporation shall transfer to a lottery trust fund the amount of net revenues which
the corporation determines are surplus to its needs. These funds shall be held in
trust until 1990 at which time the General Assembly shall determine the manner in
which the funds will be allocated and appropriated. The net revenues shall be
determined by deducting from gross revenues the payment costs incurred in the
operation and administration of the lottery, including the expenses of the
corporation and the costs resulting from any contract or contracts entered into for
promotional, advertising, or operational services or for the purchase or lease of
lottery equipment and materials, fixed capital outlays, and the payment of prizes to
the holders of winning tickets. After the start-up costs are paid, it is the intent of the
Legislature that it shall be the goal of the corporation to transfer each year thirty-
five percent (35%) of gross revenues to the general fund for the purposes stated
above.
(2)A Kentucky lottery trust account is established in the State Treasury. Net lottery
revenues shall be credited to this restricted account as provided in subsection
(1)of
this section. Moneys credited to the Kentucky lottery trust account shall be invested
by the state in accordance with state investment practices and all earnings from the
investments shall accrue to this account. No moneys shall be allotted or expended
from this account unless pursuant to an appropriation by the General Assembly,
except that moneys as are needed shall be transferred to the general fund pursuant
to the provisions of the Acts of the Extraordinary Session of the 1988 General
Assembly. Moneys in the Kentucky lottery trust account shall not lapse at the close
of the state fiscal year.
(3)Each fiscal year, three million dollars ($3,000,000) from net lottery revenues from
the sale of lottery tickets shall be credited from the general fund as follows:
(a)To the statewide reading research center established under KRS 164.0207,
one million two hundred thousand dollars ($1,200,000); and
(b)To the reading diagnostic and intervention fund, one million eight hundred
thousand dollars ($1,800,000).
(4)After the allocation of three million dollars ($3,000,000) to literacy development, as
provided in subsection
(3)of this section, net lottery revenues from the sale of
lottery tickets shall be credited from the general fund as follows:
(a)To the Wallace G. Wilkinson Kentucky educational excellence scholarship
trust fund established in KRS 164.7877:
1. Forty percent (40%) in fiscal year 2003-2004; and
2. Forty-five percent (45%) in fiscal year 2004-2005 and each fiscal year
thereafter; and
(b)To the College Access Program and the Kentucky Tuition Grants Program
established in KRS Chapter 164:
1. Forty percent (40%) in fiscal year 2003-2004;
2. Forty-five percent (45%) in fiscal year 2004-2005; and
3. Fifty-five percent (55%) of net lottery revenues in fiscal year 2005-2006
and each fiscal year thereafter.
(5)The Auditor of Public Accounts shall be responsible for a financial postaudit of the
books and records of the corporation. The postaudit shall be conducted in
accordance with generally accepted accounting principles, shall be paid for by the
corporation, and shall be completed within ninety
(90)days of the close of the
corporation's fiscal year. The Auditor of Public Accounts shall contract with an
independent, certified public accountant who meets the qualifications existing to do
business within the Commonwealth of Kentucky to perform the corporation
postaudit. The Auditor of Public Accounts shall remain responsible for the annual
postaudit and the corporation shall pay all audit costs. The Auditor of Public
Accounts may at any time conduct additional audits, including performance audits,
of the corporation as he or she deems necessary or desirable. Contracts shall be
entered into for audit services for a period not to exceed five
(5)years and the same
firm shall not receive two
(2)consecutive audit contracts. All audits shall be filed
with the Governor, the President of the Senate, and the Speaker of the House of
Representatives. The corporation shall reimburse the Auditor of Public Accounts
for the reasonable costs of any audits performed by him or her. The corporation
shall cooperate with the Auditor of Public Accounts by giving employees
designated by any of them access to facilities of the corporation for the purpose of
efficient compliance with their respective responsibilities. With respect to any
reimbursement that the corporation is required to pay to any agency, the corporation
shall enter into an agreement with that agency under which the corporation shall
pay to the agency an amount reasonably anticipated to cover the reimbursable
expenses in advance of the expenses being incurred.
(6)By no later than December 31 of each year, in an advertisement at least one-fourth
(1/4) of a page in size, the Kentucky Lottery Corporation shall publish the
following information in every general-circulation daily newspaper published in
Kentucky:
(a)The statements of revenue, expenses, and changes in retained earnings as
shown in the most recent annual audit report. It shall be explained that the
transfer of dividends is the amount of lottery earnings transferred to the
general fund;
(b)A statement identifying the auditing firm;
(c)A telephone number which citizens may call to obtain a complete copy of the
annual audit report; and
(d)The name of the president/chief executive officer of the Kentucky Lottery
Corporation and a complete list of board members. The Kentucky Lottery Corporation shall pay for the cost of the advertisement.