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Read. Follow. Verify.Kentucky HB 520 adjusts audit thresholds and reporting requirements for local government entities
Last action · February 5, 2026: to Local Government (H)Sponsor: Walker Thomas
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What This Bill Proposed
Kentucky House Bill 520 modifies fiscal reporting and audit requirements for special purpose governmental entities, area planning commissions, sanitation districts, and county officials. The measure updates revenue thresholds for mandatory audits, establishes procedures for agreed-upon audit engagements, and sets an effective date of July 1, 2027, for sections 1, 2, and 3.
Changes financial oversight burdens and compliance schedules for local public entities, altering when special districts must conduct audits versus s based on annual receipts and expenditures.
- Special purpose governmental entities in Kentucky include districts and boards such as water, fire protection, and sanitation districts that operate outside general county and municipal governments. context
- The Department for Local Government (DLG) provides administrative services, financial oversight, and state assistance to local governments across Kentucky. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Special purpose governmental entities
Their financial reporting thresholds, audit frequencies, and attestation requirements are revised.
County clerks and sheriffs
They are subject to updated audit rules, potential agreed-upon procedures engagements, and modified reporting responsibilities.
Area planning commissions
They must submit budgets and undergo independent audits compliant with Section 1 of the Act.
Sanitation districts
Their boards of directors must obtain annual audits conducted by a certified public accountant and file copies with state and local officials.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
What are the new financial thresholds for special purpose governmental entity audits?
What happens to outgoing county officials' settlements?
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News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
2 actions- Feb 5, 2026HouseCommitteeto Local Government (H)
- Jan 29, 2026HouseIntroducedintroduced in House to Committee on Committees (H)
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Raised Financial Thresholds for Special Purpose Entity Audits
The bill raises the floor for mandatory annual audits from $100,000 to $500,000 and $1,000,000 for various special purpose governmental entities.
Connected Entities
Sources
apps.legislature.ky.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 65)
- Controversy15Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz20Current news / social attention level
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