Senate committee substitute makes the following changes to the 1st edition.
Amends proposed GS 147-64.6E to also require nonprofit corporations that receive funds from a county or municipality, in addition to those receiving state funds, to be subject to an audit, and requires that the audit required of the specified nonprofit corporations be administered quadrennially. Provides for an alternative quadrennial financial review for nonprofit corporations with annual total revenues of $999,999 or less. Authorizes the nonprofit corporation to select the certified public accounting firm to perform the required audit or review. Exempts nonprofit corporations that have performed an independent financial audit or financial review in compliance with federal law, nonprofit corporations that have submitted an audit or review prepared by a certified public accountant in the ordinary course of business, and nonprofit corporations that have dissolved or ceased operations at the time an audit is required. Provides for public authorities subject to GS 159-34 to comply by submitting the audit required by the Local Government Commission. Authorizes, but does not direct, the State Auditor to select independent certified public accountants to perform the required audits for state agencies (currently, directs the Auditor to select the independent certified public accountants for state agencies and nonprofit corporations receiving public funds). Provides that the State Auditor and the State are not responsible for the actual costs of audits and financial reviews for nonprofit corporations. Makes conforming changes.
Bill Summaries: S304 REQUIRED FINANCIAL AUDITS.
Bill S 304 (2017-2018)Summary date: Mar 28 2017 - View Summary
Bill S 304 (2017-2018)Summary date: Mar 16 2017 - View Summary
Enacts new GS 147-64.6E to make all principal offices and departments listed in GS 143A-11 and GS 143B-6 subject to an annual financial audit. Requires State agencies not listed in those statutes to undergo biennial financial audits. Requires nonprofits that receive State funds (as defined in GS 143C-1-1) or local funds to undergo a quadrennial financial audit. Requires the State Auditor to select independent certified public accountants to perform these audits, under the State Auditor's supervision. Requires audit results to be submitted to the Auditor, General Assembly, and the Governor, and makes them public records.
Sets out requirements that must be met when contracting for auditing services by an independent certified public accountant.
Requires local governments and public authorities subject to GS 159-34 to submit an audit of its accounts (which are considered to be public record) to the Auditor, General Assembly, and the Governor.
Authorizes the Auditor to collect the costs of audit work from each State office, department, agency, or nonprofit corporation.
Specifies that the audits performed under the statute are in addition to any discretionary audits made by the Auditor.
Makes conforming changes to GS 147-64.6.
Effective January 1, 2018.