Title 702 | Chapter 003 | Regulation 110REG
PROPOSED
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PREVIOUS VERSION
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EDUCATION AND LABOR CABINET
Board of Education
Department of Education
(Amendment)
702 KAR 3:110.Financial document submission requirements.Document filing dates.
Section 1.
Submission Requirements. Each school district shall electronically submit copies of the following financial documents to the Kentucky Department of Education containing data elements and information in the formats prescribed by the department in the financial accounting system by the following dates annually:(1)
The Tentative Budget adopted by the local board of education pursuant to KRS 160.461, no later than five business days after(2)
The unaudited Annual Financial Report that complies with KRS 157.060 and the Balance Sheet, by(3)
(3)(4)
The Working Budget adopted by the local board of education pursuant to KRS 160.461, no later than five business days afterSection 2.
Working Budget Disapproval Criteria and Process.(1)
The working budget adopted by the local board of education pursuant to KRS 160.461 shall be disapproved by the Kentucky Board of Education if it is financially unsound or fails to comply with applicable law.(a)
(b)
(c)
(2)
The Kentucky Board of Education shall state the reason for disapproval, and the localSection 3.
(1)
(a)
(b)
(c)
(d)
(2)
HISTORY: COMPILER'S NOTE: 2025 RS HB 6, enacted by the General Assembly on March 27, 2025, altered the information to be provided at the time an administrative regulation is filed. Aside from formatting changes necessary to upload the regulation into the LRC's publication application, this regulation has been published as submitted by the agency.
This is to certify that the chief state school officer has reviewed and recommended this administrative regulation prior to its adoption by the Kentucky Board of Education, as required by KRS 156.070(5).
DR. ROBBIE FLETCHER, Commissioner of Education
LU YOUNG, Chair, Board of Education
APPROVED BY AGENCY: October 12, 2026
FILED WITH LRC: October 12, 2026 AT 9:05 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on December 21, 2026, at 1:00 p.m., ET, in the State Board Room, Fifth Floor, 300 Sower Boulevard, Frankfort, Kentucky. 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 was received by that date, the hearing may be cancelled. 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 through December 31, 2026. 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: Todd G. Allen, General Counsel, Kentucky Department of Education, 300 Sower Boulevard, 5th Floor, Frankfort, Kentucky 40601, phone 502-564-4474, fax 502-564- 9321, email regcomments@education.ky.gov
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Todd G. Allen, Phone: 502-564-4474, Email: todd.allen@education.ky.gov
Subject Headings:
Education; Education: Elementary; Education: Secondary
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes requirements for local school districts to electronically submit specified financial documents to the Kentucky Department of Education and establishes the criteria and process for disapproval of a local board of education's working budget.
(b) The necessity of this administrative regulation:
KRS 156.160 requires the Kentucky Board of Education to promulgate administrative regulations establishing a uniform series of financial forms for local school districts and for the preparation of school district budgets. KRS 157.060 requires each local school district to submit an annual financial report. KRS 160.461 requires each local board of education to submit its adopted working budget to the Kentucky Board of Education for final approval. This administrative regulation establishes the requirements and deadlines necessary to implement these statutory requirements.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 156.070 authorizes the Kentucky Board of Education to have the management and control of the common schools and all programs operated in those schools. KRS 156.160 requires the Kentucky Board of Education to promulgate administrative regulations establishing a uniform series of financial forms for local school districts and for the preparation of school district budgets. This administrative regulation establishes requirements for the submission of school district financial documents and the criteria and process for review and disapproval of working budgets.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation provides uniform requirements and deadlines for the electronic submission of financial documents by local school districts and establishes the criteria and process used by the Kentucky Board of Education to disapprove a working budget that is financially unsound or does not comply with applicable law.
(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:
This amendment updates and modernizes the financial document submission requirements for local school districts. The amendment removes references to outdated MUNIS forms and incorporated material, requires financial documents to contain data elements and information in formats prescribed by the Kentucky Department of Education in the financial accounting system, updates submission deadlines, and clarifies the criteria and process for disapproval of a local board of education's working budget.
(b) The necessity of the amendment to this administrative regulation:
The amendment is necessary to remove outdated references to specific financial forms and the MUNIS system, align financial document submission requirements and deadlines with current statutory requirements and Department practices, and clarify the criteria and process for working budget disapproval.
(c) How the amendment conforms to the content of the authorizing statutes:
The amendment conforms to KRS 156.070 and 156.160 by establishing updated requirements for the submission of local school district financial documents and the preparation and review of school district budgets. The amendment also implements the financial reporting and working budget submission requirements established by KRS 157.060 and 160.461.
(d) How the amendment will assist in the effective administration of the statutes:
The amendment will assist in the effective administration of the statutes by establishing the requirements and deadlines for the electronic submission of school district financial documents, allowing the Kentucky Department of Education to prescribe the data elements and formats necessary for financial reporting, and clarifying the criteria and process for review and disapproval of working budgets.
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
Yes. See 2026 Ky. Acts ch. 129, sec. 2 and 2026 Ky. Acts ch. 196, sec. 26.
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
The Kentucky Department of Education and Kentucky's public school districts.
(5) Provide an analysis of how the entities identified in question (4) 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 (4) will have to take to comply with this administrative regulation or amendment:
Local school districts will electronically submit the Tentative Budget, unaudited Annual Financial Report and Balance Sheet, and Working Budget to the Kentucky Department of Education in accordance with the deadlines and submission requirements established in the administrative regulation. A local board of education whose working budget is disapproved by the Kentucky Board of Education will amend the working budget to address the reason for disapproval and resubmit the working budget for final approval.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
The cost to the Kentucky Department of Education and local school districts is expected to be minimal. The amendment primarily updates existing financial reporting and budget submission requirements and does not establish a new financial reporting process.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
The Kentucky Department of Education and local school districts will benefit from financial document submission requirements that reflect current financial reporting practices and systems. The amendment removes outdated references to specific MUNIS forms, clarifies submission deadlines and requirements, and provides clearer criteria and procedures for the review and disapproval of working budgets.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There will be minimal cost to the Kentucky Department of Education.
(b) On a continuing basis:
The ongoing cost to the Kentucky Department of Education will be minimal.
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
General Funds.
(8) 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:
None.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
There are no fees associated with this administrative regulation.
(10) TIERING: Is tiering applied?
Tiering is not applied. The regulation applies uniformly.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 156.070, 156.160, 157.060, 160.461, and 2026 Ky Acts ch. 196, sec. 26.
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
KRS 156.070 and 156.160.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
Kentucky Board of Education and Kentucky Department of Education.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
Any expenditure is expected to be minimal.
For subsequent years:
Any expenditure is expected to be minimal.
2. Revenues:
For the first year:
This regulation is not expected to generate revenue.
For subsequent years:
This regulation is not expected to generate revenue.
3. Cost Savings:
For the first year:
No cost savings are anticipated.
For subsequent years:
No cost savings are anticipated.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
Kentucky public school districts.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
Costs to local school districts are in the form of staff time associated with preparing and electronically submitting the required financial documents. These costs are estimated to be minimal.
For subsequent years:
Costs to local school districts are in the form of staff time associated with preparing and electronically submitting the required financial documents. These costs are estimated to be minimal.
2. Revenues:
For the first year:
This regulation is not expected to generate revenue.
For subsequent years:
This regulation is not expected to generate revenue.
3. Cost Savings:
For the first year:
No cost savings are anticipated.
For subsequent years:
No cost savings are anticipated.
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
None.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
Not applicable.
For subsequent years:
Not applicable.
2. Revenues:
For the first year:
Not applicable.
For subsequent years:
Not applicable.
3. Cost Savings:
For the first year:
Not applicable.
For subsequent years:
Not applicable.
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
For the Kentucky Department of Education, any expenditures associated with administration of the regulation are expected to be minimal. The administrative regulation is not expected to generate revenue, and no significant cost savings are anticipated. For local school districts, costs are primarily in the form of staff time associated with preparing and electronically submitting required financial documents. These costs are expected to be minimal because the regulation governs financial documents and submissions that school districts are already required to prepare and submit.
(b) Methodology and resources used to reach this conclusion:
The estimates are based on existing Kentucky Department of Education and local school district financial reporting and budget submission practices. The amendment primarily updates and clarifies existing requirements and does not establish a substantially new reporting process.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
The administrative regulation will not have a major economic impact.
(b) The methodology and resources used to reach this conclusion:
The estimate is based on existing program operations and financial reporting practices. The amendment primarily updates existing financial document submission requirements, deadlines, and procedures and is not expected to result in significant additional expenditures, revenues, or cost savings for the Kentucky Department of Education or local school districts.
EDUCATION AND LABOR CABINET
Board of Education
Department of Education
(Amendment)
702 KAR 3:110.Financial document submission requirements.
Section 1.
Submission Requirements. Each school district shall electronically submit copies of the following financial documents to the Kentucky Department of Education containing data elements and information in the formats prescribed by the department in the financial accounting system by the following dates annually:(1)
The Tentative Budget adopted by the local board of education pursuant to KRS 160.461, no later than five business days after May 31;(2)
The unaudited Annual Financial Report that complies with KRS 157.060 and the Balance Sheet, by July 25; and(3)
The Working Budget adopted by the local board of education pursuant to KRS 160.461, no later than five business days after September 30.Section 2.
Working Budget Disapproval Criteria and Process.(1)
The working budget adopted by the local board of education pursuant to KRS 160.461 shall be disapproved by the Kentucky Board of Education if it is financially unsound or fails to comply with applicable law.(2)
The Kentucky Board of Education shall state the reason for disapproval, and the local board of education shall amend its working budget to obviate the reason for disapproval and resubmit the working budget to the Kentucky Board of Education for final approval.HISTORY: COMPILER'S NOTE: 2025 RS HB 6, enacted by the General Assembly on March 27, 2025, altered the information to be provided at the time an administrative regulation is filed. Aside from formatting changes necessary to upload the regulation into the LRC's publication application, this regulation has been published as submitted by the agency.
This is to certify that the chief state school officer has reviewed and recommended this administrative regulation prior to its adoption by the Kentucky Board of Education, as required by KRS 156.070(5).
DR. ROBBIE FLETCHER, Commissioner of Education
LU YOUNG, Chair, Board of Education
APPROVED BY AGENCY: October 12, 2026
FILED WITH LRC: October 12, 2026 AT 9:05 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on December 21, 2026, at 1:00 p.m., ET, in the State Board Room, Fifth Floor, 300 Sower Boulevard, Frankfort, Kentucky. 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 was received by that date, the hearing may be cancelled. 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 through December 31, 2026. 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: Todd G. Allen, General Counsel, Kentucky Department of Education, 300 Sower Boulevard, 5th Floor, Frankfort, Kentucky 40601, phone 502-564-4474, fax 502-564- 9321, email regcomments@education.ky.gov
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Todd G. Allen, Phone: 502-564-4474, Email: todd.allen@education.ky.gov
Subject Headings:
Education; Education: Elementary; Education: Secondary
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes requirements for local school districts to electronically submit specified financial documents to the Kentucky Department of Education and establishes the criteria and process for disapproval of a local board of education's working budget.
(b) The necessity of this administrative regulation:
KRS 156.160 requires the Kentucky Board of Education to promulgate administrative regulations establishing a uniform series of financial forms for local school districts and for the preparation of school district budgets. KRS 157.060 requires each local school district to submit an annual financial report. KRS 160.461 requires each local board of education to submit its adopted working budget to the Kentucky Board of Education for final approval. This administrative regulation establishes the requirements and deadlines necessary to implement these statutory requirements.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 156.070 authorizes the Kentucky Board of Education to have the management and control of the common schools and all programs operated in those schools. KRS 156.160 requires the Kentucky Board of Education to promulgate administrative regulations establishing a uniform series of financial forms for local school districts and for the preparation of school district budgets. This administrative regulation establishes requirements for the submission of school district financial documents and the criteria and process for review and disapproval of working budgets.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation provides uniform requirements and deadlines for the electronic submission of financial documents by local school districts and establishes the criteria and process used by the Kentucky Board of Education to disapprove a working budget that is financially unsound or does not comply with applicable law.
(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:
This amendment updates and modernizes the financial document submission requirements for local school districts. The amendment removes references to outdated MUNIS forms and incorporated material, requires financial documents to contain data elements and information in formats prescribed by the Kentucky Department of Education in the financial accounting system, updates submission deadlines, and clarifies the criteria and process for disapproval of a local board of education's working budget.
(b) The necessity of the amendment to this administrative regulation:
The amendment is necessary to remove outdated references to specific financial forms and the MUNIS system, align financial document submission requirements and deadlines with current statutory requirements and Department practices, and clarify the criteria and process for working budget disapproval.
(c) How the amendment conforms to the content of the authorizing statutes:
The amendment conforms to KRS 156.070 and 156.160 by establishing updated requirements for the submission of local school district financial documents and the preparation and review of school district budgets. The amendment also implements the financial reporting and working budget submission requirements established by KRS 157.060 and 160.461.
(d) How the amendment will assist in the effective administration of the statutes:
The amendment will assist in the effective administration of the statutes by establishing the requirements and deadlines for the electronic submission of school district financial documents, allowing the Kentucky Department of Education to prescribe the data elements and formats necessary for financial reporting, and clarifying the criteria and process for review and disapproval of working budgets.
(3) Does this administrative regulation or amendment implement legislation from the previous five years?
Yes. See 2026 Ky. Acts ch. 129, sec. 2 and 2026 Ky. Acts ch. 196, sec. 26.
(4) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
The Kentucky Department of Education and Kentucky's public school districts.
(5) Provide an analysis of how the entities identified in question (4) 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 (4) will have to take to comply with this administrative regulation or amendment:
Local school districts will electronically submit the Tentative Budget, unaudited Annual Financial Report and Balance Sheet, and Working Budget to the Kentucky Department of Education in accordance with the deadlines and submission requirements established in the administrative regulation. A local board of education whose working budget is disapproved by the Kentucky Board of Education will amend the working budget to address the reason for disapproval and resubmit the working budget for final approval.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (4):
The cost to the Kentucky Department of Education and local school districts is expected to be minimal. The amendment primarily updates existing financial reporting and budget submission requirements and does not establish a new financial reporting process.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (4):
The Kentucky Department of Education and local school districts will benefit from financial document submission requirements that reflect current financial reporting practices and systems. The amendment removes outdated references to specific MUNIS forms, clarifies submission deadlines and requirements, and provides clearer criteria and procedures for the review and disapproval of working budgets.
(6) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
There will be minimal cost to the Kentucky Department of Education.
(b) On a continuing basis:
The ongoing cost to the Kentucky Department of Education will be minimal.
(7) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation or this amendment:
General Funds.
(8) 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:
None.
(9) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
There are no fees associated with this administrative regulation.
(10) TIERING: Is tiering applied?
Tiering is not applied. The regulation applies uniformly.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:
KRS 156.070, 156.160, 157.060, 160.461, and 2026 Ky Acts ch. 196, sec. 26.
(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:
KRS 156.070 and 156.160.
(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:
Kentucky Board of Education and Kentucky Department of Education.
(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):
1. Expenditures:
For the first year:
Any expenditure is expected to be minimal.
For subsequent years:
Any expenditure is expected to be minimal.
2. Revenues:
For the first year:
This regulation is not expected to generate revenue.
For subsequent years:
This regulation is not expected to generate revenue.
3. Cost Savings:
For the first year:
No cost savings are anticipated.
For subsequent years:
No cost savings are anticipated.
(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):
Kentucky public school districts.
(b) Estimate the following for each affected local entity identified in (4)(a):
1. Expenditures:
For the first year:
Costs to local school districts are in the form of staff time associated with preparing and electronically submitting the required financial documents. These costs are estimated to be minimal.
For subsequent years:
Costs to local school districts are in the form of staff time associated with preparing and electronically submitting the required financial documents. These costs are estimated to be minimal.
2. Revenues:
For the first year:
This regulation is not expected to generate revenue.
For subsequent years:
This regulation is not expected to generate revenue.
3. Cost Savings:
For the first year:
No cost savings are anticipated.
For subsequent years:
No cost savings are anticipated.
(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):
None.
(b) Estimate the following for each regulated entity identified in (5)(a):
1. Expenditures:
For the first year:
Not applicable.
For subsequent years:
Not applicable.
2. Revenues:
For the first year:
Not applicable.
For subsequent years:
Not applicable.
3. Cost Savings:
For the first year:
Not applicable.
For subsequent years:
Not applicable.
(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)
(a) Fiscal impact of this administrative regulation:
For the Kentucky Department of Education, any expenditures associated with administration of the regulation are expected to be minimal. The administrative regulation is not expected to generate revenue, and no significant cost savings are anticipated. For local school districts, costs are primarily in the form of staff time associated with preparing and electronically submitting required financial documents. These costs are expected to be minimal because the regulation governs financial documents and submissions that school districts are already required to prepare and submit.
(b) Methodology and resources used to reach this conclusion:
The estimates are based on existing Kentucky Department of Education and local school district financial reporting and budget submission practices. The amendment primarily updates and clarifies existing requirements and does not establish a substantially new reporting process.
(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):
(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):
The administrative regulation will not have a major economic impact.
(b) The methodology and resources used to reach this conclusion:
The estimate is based on existing program operations and financial reporting practices. The amendment primarily updates existing financial document submission requirements, deadlines, and procedures and is not expected to result in significant additional expenditures, revenues, or cost savings for the Kentucky Department of Education or local school districts.