Automated Systems and the Pre-Audit Requirement

Wednesday, September 8, 2021

Under North Carolina Session Law 2021-58, units of local government subject to the pre-audit requirements of North Carolina General Statute 159-28 may now use an automated system to meet those requirements if:

  1. An annual certification is filed with the Secretary of the LGC by the unit’s finance officer
  2. The system has all of the following:
  • Embedded functionality that determines that there is an appropriation to the department, function code, or project in which the transaction appropriately falls.
  • Functionality ensuring that unencumbered funds remain in the appropriation to pay out any amounts that are expected to come due during the budgeted period.
  • Real-time visibility to budget compliance, alert threshold notifications, and rules-based compliance measures and enforcement.

To file a certification with the Secretary of the LGC, please visit the LGC File Transfer Portal at https://lgcportal.nctreasurer.com/, then select “Other” and “Pre-Audit System Certification.”

 

 

 

 

 

 

 

 

 

You will be presented with a form in which the finance officer can provide unit information, confirm that the automated system meets the requirements of the statute, and file a certification. Note that the Secretary of the Commission may reject or revoke the certification if the annual audit for the unit's or public authority's immediately preceding fiscal year includes a finding of budgetary noncompliance or if the Secretary determines that the automated financial computer system fails to meet the requirements of the statute.

Please read the full text of the changes in Session Law 2021-58 prior to filing a certification. Feel free to contact LGC staff with questions at SLGFD@nctreasurer.com or 919-814-4300.