The SFCC encourages districts to close completed project accounts that have SFCC participation in them as soon as possible and use the remaining funds to enhance facilities. However, 750 KAR 1:010, Section 7 (1) states that local funds in a project must be expended before state funds are spent. This means that the remaining funds in the project account are considered to have been generated from the SFCC bond sale.
The following are the specific possible uses of funds left in a construction account once a building project is complete:
- Apply the remaining funds to the project at the specific site for which the bonds were sold. They can be used to purchase furnishings or any other needed non-supply item. 750 KAR 1:010, Section 7 (2)
- Transfer the balance to the construction account for the next project on the approved facility plan of the school district. 750 KAR 1:010, Section 7 (3)
- Reimburse the general fund for any legitimate expenditure incurred on the project for which bond funds have been used. Such costs may include site acquisition; providing architectural and engineering services; financial and legal services; and equipment. Construction costs may include the cost of fixed equipment and movable equipment, but may not include the cost of supplies as defined. 750 KAR 1:010, Section 7 (3)
- Funds up to the amount of interest earned may be used for the current local KETS match as provided in 750 KAR 0:010. They may not be used to reimburse the general fund for past technology purchases or matches.
- In addition to the above four options, funds may be applied to the debt service on the bond issue. Credit against the district and the commission’s debt service schedule shall be applied in the same percentage as the participation in the bond issue. 750 KAR 1:010, Section 8, 4 (d)
In order to use funds for any of the above purposes, districts must receive prior approval from the SFCC.
For questions regarding construction account closeout procedures or requests for approval, please contact For questions regarding construction account closeout procedures or requests for approval, please contact Kristi Russell at kristi.russell@ky.gov.