House committee substitute amends the 1st edition as follows. 

Part I

Amends proposed GS 147-69.3(i3), which authorizes the State Treasurer to invest in Sudan and South Sudan to the extent allowed by the US Government. Replaces the proposed language to instead authorize the State Treasurer to invest in the countries of Sudan and South Sudan to the extent not prohibited by the US Government, or to the extent that such investment is part of an index or index replication strategy, a commingled fund, limited partnership, or similar investment vehicles, or a derivative instrument. Makes clarifying changes to GS 147-86.57.

Part II

Amends the proposed additions to GS 159-28 to require that when an automated financial computer system is used for a preaudit, that the finance officer certify to the Secretary of the Commission no later than 30 days after the start (was, the end) of the fiscal year that the system meets all of the necessary requirements. 

Modifies the proposed additions to GS 159-181, which authorize the Local Government Commission to waive the annual independent audit requirement of GS 159-34(a) for any missing audit reports if the use of all grant funds and borrowed funds are documented to the satisfaction of the grantors and lenders. Now requires the Local Government Commission to consider recommending the revocation of the charter or the dissolution of the local government unit or public authority if the Commission waives the annual audit requirement (previously, required consideration of recommending the abolishment of the local government or public authority).

Makes organizational changes to move the provisions of previous Part IV, which authorize the Local Government Commission to impound the books and records and take other required actions with respect to the Towns of Eureka and Spencer Mountain, to Part II.

Adds a new section amending GS 115C-218.30 to specify that the audit requirements of charter schools are not subject to the Local Government Commission's authority, oversight, or review. 

Makes further organizational changes.