224A.306 Conditions for receiving assistance from fund for water-related

243 words·~1 min read·/ky/224a-306

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

infrastructure projects.

(1)The authority shall require the following as conditions for receiving assistance from

any fund administered by the authority for infrastructure projects related to water

and wastewater service:

(a)Establishment and use of a financial accounting system that accounts for the

operations of water treatment and distribution separately from all other

operations of the applicant;

(b)Establishment of service rates based upon the cost of providing the service;

and

(c)An agreement that the authority may require an audit to be conducted of the

applicant at least once every two

(2)years.

(2)The authority shall require all applicants within a class to use the same accounting

system. The authority may accept present accounting systems in use and applied

uniformly to all applicants within a class, for example, the uniform system of

accounts established by the National Association of Regulatory Utility

Commissioners.

(3)The authority may assist water providers to establish accounting systems that meet

the requirements of this section. The authority may provide assistance by paying for

third-party private contractors or assistance from the Kentucky Auditor of Public

Accounts.

(4)The authority may pay for costs related to establishing a new uniform accounting

system for the use of governmental agencies that merge or consolidate their water

services if:

(a)The merging or consolidating entities use different accounting systems; and

(b)The merger or consolidation is consistent with a water management planning

council plan as reviewed and prioritized under KRS 151.607.