Kentucky Revised Statutes Title VI. Financial Administration § 45.231.Payment of prior year claims

(1) Any claim against any agency, department, or budget unit not presented or encumbered for payment within the fiscal year in which the obligation was incurred may, after determination by the secretary of the Finance and Administration Cabinet, be found to be a valid claim against the Commonwealth, and may be authorized for payment out of the appropriation for the prior year claims, provided that the agency, department, or budget unit had an available balance sufficient to pay the obligation at the close of the fiscal year in which the obligation was incurred. All claims authorized to be paid under this section shall be limited to those incurred during the two (2) preceding fiscal years, and the total of such claims paid for any one (1) agency, department, or budget unit shall not exceed the available balance remaining to the credit of such agency, department, or budget unit at the close of the fiscal year in which the obligations were incurred.

(2) Any claim incurred against any revolving, trust or agency fund account of any department or agency and authorized to be paid under subsection (1) of this section shall be charged against the current balance to the credit in such revolving, trust or agency fund account, and not the general expenditure fund.