Title 201 | Chapter 001 | Regulation 200
SUPERSEDED
This document is no longer current.
BOARDS AND COMMISSIONS
State Board of Accountancy
(New Administrative Regulation)
201 KAR 1:200.Board of Accountancy Scholarship Funding.
Section 1.
Definitions.(1)
"Board" is defined by 325.220(2).(2)
"CPA" means certified public accountant.(3)
"Educational Foundation of the Kentucky Society of Certified Public Accountants" means the 501(c)(3) organization established in 1961 by Kentucky Society of Certified Public Accountants to strengthen and advance the profession through enriched educational programs and scholarships.(4)
"Kentucky Society of Certified Public Accountants" means the statewide, non-profit professional organization, founded in 1924, serving certified public accountants in public accounting firms, business, industry, government and education.Section 2.
Scholarship Funding.(1)
The Board's support of scholarship programs shall include financial contributions made directly to the scholarship program operated by the Educational Foundation of the Kentucky Society of Certified Public Accountants, which recognizes scholastic achievement and leadership qualities in students who plan to become CPAs.(2)
Decisions regarding the amount and timing of the Board's scholarship funding distributions to the program shall be made at the sole discretion of the Board, and such expenditures shall in no way hinder or interfere with the performance of the Board's regulatory purpose or statutory responsibilities.Section 3.
Administration of the Scholarship Program and Criteria for Awards.(1)
Program scholarships funded by the Board shall be administered by the trustees of the Educational Foundation consistent with the existing administrative guidelines of its scholarship program.(2)
Apart from its monetary contributions, the Board shall have no involvement in any administration of the scholarship program. Even with regard to scholarship awards funded by the Board, members of the Educational Foundation of the Kentucky Society of Certified Public Accountants shall continue to administer the program under its existing guidelines.(3)
As the one and only departure from the existing parameters and guidelines of the scholarship program established and administered by the Educational Foundation of the Kentucky Society of Certified Public Accountants, to be eligible to receive scholarship funds provided by the Board, an applicant shall be enrolled in a Kentucky-based college or university.(4)
In all other respects, the existing parameters and guidelines of the scholarship program established and administered by the Educational Foundation of the Kentucky Society of Certified Public Accountants governing applicant eligibility; the application process; selection criteria; the selection process; and award amounts, distribution and permitted use, shall be utilized in connection with scholarship awards funded by the Board's financial contributions.(5)
Information on each of those specific elements of the Educational Foundation's scholarship program can be found on the website of Kentucky Society of Certified Public Accountants, kycpa.org.DAVID R. PRICE, President
APPROVED BY AGENCY: December 11, 2023
FILED WITH LRC: December 14, 2023 at 8:45 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Thursday, February 22, 2024 at 1:00 p.m., EST at the office of the Board located at 332 W. Broadway, Suite 310 Louisville, Kentucky 40202. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given the opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until the end of the day (11:59 p.m.) February 29, 2024. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Joseph P. Donohue, Executive Director, Kentucky State Board of Accountancy, 332 W. Broadway, Suite 310, Louisville, Kentucky 40202, phone (502) 595-3037,email joep.donohue@ky.gov
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Joseph P. Donohue
(1) Provide a brief summary of:
(a) What this administrative regulation does:
KRS 325.240(7)(b) authorizes the Kentucky State Board of Accountancy (“Board”) to expend funds from its account created by KRS 325.250 to support scholarship programs that assist students enrolled in a Kentucky based college or university who also satisfy other criteria contained in an administrative regulation promulgated by the Board. This administrative regulation identifies the scholarship program that will be funded by the Board and establishes the selection criteria that will be used to identify scholarship recipients.
(b) The necessity of this administrative regulation:
To insure that the public, eligible college students, and prospective Certified Public Accountant (CPA) candidates are aware of the existence, parameters and guidelines of the scholarship funding offered by the Board.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 325.240(7)(b) authorizes the Kentucky State Board of Accountancy to expend funds from its account created by KRS 325.250 to support scholarship certain programs and to promulgate a regulation establishing the eligibility criteria and administration of the scholarship program.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
The scholarship funding established by this regulation is intended to enhance the number of college degrees in Kentucky, expand the pipeline of CPAs and financial professionals in the business marketplace, and open up to students the career opportunities open to those who pursue an accounting degree.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
N/A
(b) The necessity of the amendment to this administrative regulation:
N/A
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This regulation will affect students enrolled in Kentucky based colleges or universities demonstrating scholastic achievement and leadership qualities who plan to become CPAs. The number of such individuals is currently unknown.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
No mandatory additional actions will be required. It will affect only those students wishing to apply for the Board’s scholarship funding.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
No additional costs will be incurred.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Applicants may be awarded scholarship funding from the Board.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
The Board anticipates making an initial transfer of fifty thousand dollars ($50,000) of Board funds to the scholarship program in conjunction with the promulgation of this administrative regulation. The amount of this expenditure will not interfere with the performance of the Board's other responsibilities.
(b) On a continuing basis:
Future additional contributions may be made at the discretion of the Board.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
No general fund dollars will be expended in connection with this funding. The Board operates solely on a restricted use account in which sufficient funds exist to support the Board’s financial contribution authorized by statute and implemented through this regulation. No additional funding sources will be required.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
No increase will be necessary.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
There is no additional or increased fee imposed by this proposed regulation.
(9) TIERING: Is tiering applied?
The application of tiering is not required.
FISCAL NOTE
(1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
The State Board of Accountancy.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 325.240(2) and KRS 325.240(7)(b)
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
None.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
None.
(c) How much will it cost to administer this program for the first year?
The Board anticipates making an initial transfer of fifty thousand dollars ($50,000) of Board funds to the scholarship program in conjunction with the promulgation of this administrative regulation.
(d) How much will it cost to administer this program for subsequent years?
While no specific contributions in future years have been established, to the extent sufficient funds exist, additional contributions may be made at the discretion of the Board.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Neutral
Expenditures (+/-):
Expenditures will increase through a $50,000 transfer of funds from the Board’s restricted account.
Other Explanation:
No general fund dollars will be expended in connection with this funding.
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of regulated entities for the first full year the administrative regulation is to be in effect.
(a) How much cost savings will this administrative regulation generate for the regulated entities for the first year?
No cost savings are anticipated.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
No cost savings are anticipated.
(c) How much will it cost the regulated entities for the first year?
The Board anticipates making an initial transfer of fifty thousand dollars ($50,000) of Board funds to the scholarship program in conjunction with the promulgation of this administrative regulation. Consistent with the enabling statute, the amount of this expenditure will not interfere with the performance of the Board's other responsibilities.
(d) How much will it cost the regulated entities for subsequent years?
While no specific contributions in future years have been established, to the extent sufficient funds exist, additional contributions may be made at the discretion of the Board.Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
Neutral.
Expenditures (+/-):
Expenditures will increase through an initial one-time $50,000 transfer of funds from the Board’s restricted account.
Other Explanation:
No general fund dollars will be expended in connection with this funding.
(5) Explain whether this administrative regulation will have a major economic impact, as defined below.
"Major economic impact" means an overall negative or adverse economic impact from an administrative regulation of five hundred thousand dollars ($500,000) or more on state or local government or regulated entities, in aggregate, as determined by the promulgating administrative bodies. [KRS 13A.010 (13)]. The proposed amendment will not have a major economic impact.
BOARDS AND COMMISSIONS
State Board of Accountancy
(New Administrative Regulation)
201 KAR 1:200.Board of Accountancy Scholarship Funding.
Section 1.
Definitions.(1)
"Board" is defined by 325.220(2).(2)
"CPA" means certified public accountant.(3)
"Educational Foundation of the Kentucky Society of Certified Public Accountants" means the 501(c)(3) organization established in 1961 by Kentucky Society of Certified Public Accountants to strengthen and advance the profession through enriched educational programs and scholarships.(4)
"Kentucky Society of Certified Public Accountants" means the statewide, non-profit professional organization, founded in 1924, serving certified public accountants in public accounting firms, business, industry, government and education.Section 2.
Scholarship Funding.(1)
The Board's support of scholarship programs shall include financial contributions made directly to the scholarship program operated by the Educational Foundation of the Kentucky Society of Certified Public Accountants, which recognizes scholastic achievement and leadership qualities in students who plan to become CPAs.(2)
Decisions regarding the amount and timing of the Board's scholarship funding distributions to the program shall be made at the sole discretion of the Board, and such expenditures shall in no way hinder or interfere with the performance of the Board's regulatory purpose or statutory responsibilities.Section 3.
Administration of the Scholarship Program and Criteria for Awards.(1)
Program scholarships funded by the Board shall be administered by the trustees of the Educational Foundation consistent with the existing administrative guidelines of its scholarship program.(2)
Apart from its monetary contributions, the Board shall have no involvement in any administration of the scholarship program. Even with regard to scholarship awards funded by the Board, members of the Educational Foundation of the Kentucky Society of Certified Public Accountants shall continue to administer the program under its existing guidelines.(3)
As the one and only departure from the existing parameters and guidelines of the scholarship program established and administered by the Educational Foundation of the Kentucky Society of Certified Public Accountants, to be eligible to receive scholarship funds provided by the Board, an applicant shall be enrolled in a Kentucky-based college or university.(4)
In all other respects, the existing parameters and guidelines of the scholarship program established and administered by the Educational Foundation of the Kentucky Society of Certified Public Accountants governing applicant eligibility; the application process; selection criteria; the selection process; and award amounts, distribution and permitted use, shall be utilized in connection with scholarship awards funded by the Board's financial contributions.(5)
Information on each of those specific elements of the Educational Foundation's scholarship program can be found on the website of Kentucky Society of Certified Public Accountants, kycpa.org.DAVID R. PRICE, President
APPROVED BY AGENCY: December 11, 2023
FILED WITH LRC: December 14, 2023 at 8:45 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Thursday, February 22, 2024 at 1:00 p.m., EST at the office of the Board located at 332 W. Broadway, Suite 310 Louisville, Kentucky 40202. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given the opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until the end of the day (11:59 p.m.) February 29, 2024. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Joseph P. Donohue, Executive Director, Kentucky State Board of Accountancy, 332 W. Broadway, Suite 310, Louisville, Kentucky 40202, phone (502) 595-3037,email joep.donohue@ky.gov
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Joseph P. Donohue
(1) Provide a brief summary of:
(a) What this administrative regulation does:
KRS 325.240(7)(b) authorizes the Kentucky State Board of Accountancy (“Board”) to expend funds from its account created by KRS 325.250 to support scholarship programs that assist students enrolled in a Kentucky based college or university who also satisfy other criteria contained in an administrative regulation promulgated by the Board. This administrative regulation identifies the scholarship program that will be funded by the Board and establishes the selection criteria that will be used to identify scholarship recipients.
(b) The necessity of this administrative regulation:
To insure that the public, eligible college students, and prospective Certified Public Accountant (CPA) candidates are aware of the existence, parameters and guidelines of the scholarship funding offered by the Board.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 325.240(7)(b) authorizes the Kentucky State Board of Accountancy to expend funds from its account created by KRS 325.250 to support scholarship certain programs and to promulgate a regulation establishing the eligibility criteria and administration of the scholarship program.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
The scholarship funding established by this regulation is intended to enhance the number of college degrees in Kentucky, expand the pipeline of CPAs and financial professionals in the business marketplace, and open up to students the career opportunities open to those who pursue an accounting degree.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
N/A
(b) The necessity of the amendment to this administrative regulation:
N/A
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This regulation will affect students enrolled in Kentucky based colleges or universities demonstrating scholastic achievement and leadership qualities who plan to become CPAs. The number of such individuals is currently unknown.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
No mandatory additional actions will be required. It will affect only those students wishing to apply for the Board’s scholarship funding.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
No additional costs will be incurred.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Applicants may be awarded scholarship funding from the Board.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
The Board anticipates making an initial transfer of fifty thousand dollars ($50,000) of Board funds to the scholarship program in conjunction with the promulgation of this administrative regulation. The amount of this expenditure will not interfere with the performance of the Board's other responsibilities.
(b) On a continuing basis:
Future additional contributions may be made at the discretion of the Board.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
No general fund dollars will be expended in connection with this funding. The Board operates solely on a restricted use account in which sufficient funds exist to support the Board’s financial contribution authorized by statute and implemented through this regulation. No additional funding sources will be required.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
No increase will be necessary.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
There is no additional or increased fee imposed by this proposed regulation.
(9) TIERING: Is tiering applied?
The application of tiering is not required.
FISCAL NOTE
(1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
The State Board of Accountancy.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 325.240(2) and KRS 325.240(7)(b)
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
None.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
None.
(c) How much will it cost to administer this program for the first year?
The Board anticipates making an initial transfer of fifty thousand dollars ($50,000) of Board funds to the scholarship program in conjunction with the promulgation of this administrative regulation.
(d) How much will it cost to administer this program for subsequent years?
While no specific contributions in future years have been established, to the extent sufficient funds exist, additional contributions may be made at the discretion of the Board.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
Neutral
Expenditures (+/-):
Expenditures will increase through a $50,000 transfer of funds from the Board’s restricted account.
Other Explanation:
No general fund dollars will be expended in connection with this funding.
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of regulated entities for the first full year the administrative regulation is to be in effect.
(a) How much cost savings will this administrative regulation generate for the regulated entities for the first year?
No cost savings are anticipated.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
No cost savings are anticipated.
(c) How much will it cost the regulated entities for the first year?
The Board anticipates making an initial transfer of fifty thousand dollars ($50,000) of Board funds to the scholarship program in conjunction with the promulgation of this administrative regulation. Consistent with the enabling statute, the amount of this expenditure will not interfere with the performance of the Board's other responsibilities.
(d) How much will it cost the regulated entities for subsequent years?
While no specific contributions in future years have been established, to the extent sufficient funds exist, additional contributions may be made at the discretion of the Board.Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
Neutral.
Expenditures (+/-):
Expenditures will increase through an initial one-time $50,000 transfer of funds from the Board’s restricted account.
Other Explanation:
No general fund dollars will be expended in connection with this funding.
(5) Explain whether this administrative regulation will have a major economic impact, as defined below.
"Major economic impact" means an overall negative or adverse economic impact from an administrative regulation of five hundred thousand dollars ($500,000) or more on state or local government or regulated entities, in aggregate, as determined by the promulgating administrative bodies. [KRS 13A.010 (13)]. The proposed amendment will not have a major economic impact.