(A) The city shall keep its accounting records and render financial reports in such a way as to:
(1) Determine compliance with statutory provisions;
(2) Determine fairly and with full disclosure the financial operations of constituent funds and account groups of the city in conformity with generally accepted governmental accounting principles; and
(3) Readily provide financial data, as may be required by the federal revenue sharing program.
(B) The municipal accounting system shall be organized and operated on a fund basis.
(KRS 91A.020)