Bill Summary for H 799 (2023-2024)
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View NCGA Bill Details | 2023-2024 Session |
AN ACT TO REQUIRE THAT ANNUAL AUDITS OF UNITS OF LOCAL GOVERNMENT, PUBLIC AUTHORITIES, AND LOCAL SCHOOL ADMINISTRATIVE UNITS BE CONDUCTED BY AN ACCOUNTANT CERTIFIED BY THE LOCAL GOVERNMENT COMMISSION; AND TO APPROPRIATE FUNDS TO THE NC ASSOCIATION OF REGIONAL COUNCILS OF GOVERNMENTS TO ASSIST LOCAL GOVERNMENTS WITH FINANCIAL RECORD KEEPING.Intro. by Winslow, Setzer, Penny, Zenger.
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Bill summary
Amends GS 159-34 (annual independent audit of local governments) to change the entity that is certifying auditors from the Local Government Commission (LGC) to the State Auditor. Amends the process for selecting the auditor by requiring the State Auditor to solicit bids for conducting audit by sealed bids and by requiring the governing board to select the auditor from the sealed bids based solely on cost and time for completion of the audit and without information about the identity of the bidder. Requires the State Auditor to establish a process for certified public accountants and accountants to become certified to conduct annual audits under GS 159-34. Specifies that any certified public accountant or accountant certified to conduct annual audits may be removed for cause. Clarifies that the LGC may require the board of a unit of local government or public authority (currently, just refers to local government or public authority) that has been the subject of an investigative audit by the State Auditor to select the certified public accountant from a list of three individuals provided by the LGC for its annual audit, instead of the bid process described above. Requires the secretary to report annually to LGC and NCGA a list of units of local government and public authorities failing to complete and report to the LGC, in a timely fashion, two or more consecutive annual audits as required by GS 159-34. Makes technical changes and language gender neutral.
Amends GS 115C-447 (annual school independent audits) to change the entity certifying the auditor from the LGC to the State Auditor. Implements the sealed bid process described above, but requires the board of education (not the local government unit) to select the auditor from the sealed bids based on time and cost, as described above. Makes technical change and language gender neutral. Implements the same annual reporting requirement described above, but for local school administrative units. Authorizes the State Auditor to implement a process for certified public accountants and accountants to become certified to conduct annual audits under GS 115C-447. Authorizes the LGC to issue rules and regulations for the purposes of improving the quality of auditing and the quality and comparability of reporting pursuant to GS 115C-447 or any similar section of the General Statutes.
Appropriates $3.52 million to the NC Association of Regional Council of Governments in recurring funds to create a fiscal administrative program to implement specified goals related to bringing small local government and public authorities into compliance.
Effective July 1, 2023, and applies to annual audits conducted on or after that date.