The Balance Sheet

The Local Government Commission has proposed changes to North Carolina Administrative Code related to the annual audit, and audit contracts and invoices.

The LGC-203 Cash and Investments report for the June 30, 2020 reporting period is due on or before July 25, 2020. You may initiate and submit your LGC-203 report for the June 30 reporting date beginning July 1, 2020.

Local governments in North Carolina are currently receiving and expending funds from the Coronavirus Aid Relief, and Economic Security Act (CARES). CARES Act federal funding is from the US Department of State Treasury (Treasury).

Accounting and Reporting for CARES Act Funding:

The federal government passed the Coronavirus Aid, Relief, And Economic Security Act (CARES Act) on March 27, 2020. The Act provides funding to cover COVID-19 expenses for the public health emergency that were not budgeted as of March 27, 2020, and are incurred between March 1, 2020, and December 31, 2020.

Recently, more than one NC local government finance officer has been presented with an annuity investment as an allowable investment option.

Executive Order 142 was issued by Governor Cooper on May 30, 2020, and extends for another 60 days the requirements of Executive Order 124 (EO 124) concerning utilities operated by local governments and public authorities. What does this mean to you as providers of these services?

The auditing community has expressed concern about its ability to complete CPE requirements due to the COVID-19 pandemic. The U.S.

Units should continue to comply with the daily deposit requirements of GS.

The GASB recently released Statement 95 Postponement of the Effective Dates of Certain Authoritative Guidance, to be effe

COVID-19 has impacted local governments in many ways, not the least of which is interfering with the timeline for completing a June 30, 2020 audit. After giving careful consideration to the limitations on local governments’ staff time and the availability of audit staff, we are extending the deadline for June 30, 2020 audits, both financial and compliance, to January 31, 2021.

As with most events recently, our annual State Treasurer’s Conference will be offered in a different format this year. Beginning on Tuesday, June 16, we will be offering four virtual sessions of two hours each on topics of interest to both local government finance officials and staff as well as local government auditors. We will not be holding a separate class for auditors this year. 

Short of having a crystal ball, finance and budget officers don’t have a lot to go on to determine the financial impact of COVID-19 on North Carolina local governments.

One of the General Assembly’s first two coronavirus pandemic response bills, SB 704 in Section 2.3, establishes the “Local Government Coronavirus Relief Reserve” (Local Reserve). The new law then transfers the sum of $300 million deri

Senate Bill 704 (S.L 2020-3), signed into law on May 4, 2020 by Governor Cooper, extends the due date of any credentials, permits, and registrations issued by DMV, and waives any penalties or fees for not complying with the original due dates of such items.

As required by G.S. 159-35, the Local Government Commission staff has emailed statements of debt service obligations to local governments. Finance Officers should have received an annual e-mail with a link to the LGC129 Report – Annual Bond and Note Principal and Interest Requirements.