The Balance Sheet

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The Balance Sheet

The Balance Sheet is the blog of the Local Government Commission staff. Click below to sign up to receive email alerts when new blog posts are released.

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For announcements and resources related to ARPA funds and the impacts of COVID-19, visit our Local Government ARPA Resources page.

ARPA Resources

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Yellow Book Standards

With the inflow and subsequent spending of ARPA funds, more local governments than ever before will be subject to Government Auditing Standards, aka Yellow Book standards beginning in fiscal year 2022 and beyond.  What exactly does that mean and why should you be thinking about this now?  Read our memo to find out – 

Updated Data Input Workbooks

The data input workbooks that must be completed and submitted with 2021 annual audit reports have been revised and were re-published to the “Submitting Your Audit” webpage at 11:00 a.m.

Important Information Regarding File Uploads

Beginning Monday, August 23, 2021, submissions of audit reports, audit contracts, and audit invoices should be uploaded through our new file portal.

Paying Bonuses or Incentives to Employees to Encourage Vaccination

UPDATED 8/19/21

Several units have or are planning to initiate programs offering cash bonuses or other incentives to employees to encourage vaccination against the COVID-19 virus. Questions have arisen about these plans as follows:

ARPA Funding Initial Reporting Requirements

The first reporting deadline (to the UST) for ARPA funds is August 31 and it's coming up fast! We have two new resources available for those of you that are required to report.

Reporting is required by the following groups at the local level:

All counties
Metropolitan Cities

Free Webinar – ARPA and Federal Aid for Water Utilities

GFOA will host a free webinar on August 12, 2021, from 1:00 pm-2:15 pm: "Introduction to the American Rescue Plan Act Funds for Water Bill Assistance and Infrastructure Projects." The webinar will feature experts from GFOA and the Environmental Finance Center Network, and will provide an introduction to the American Rescue Plan Act (ARPA), the Low-Income Housing Water Assistance Program (LIHWAP

Training for Units with Water/Sewer

Upcoming training opportunities for local governments that provide water and/or sewer services:

Host: Rural Community Assistance Partnership (RCAP)

Topic: Webinar on Managing Water Loss: The Benefits to Small Communities
Date and Time: July 20, 2021; 2pm-3pm
Location: Virtual

LGC-203 Report Due July 25

Reminder: the LGC-203 Cash and Investments report for the June 30, 2021, reporting period is due on or before July 25, 2021. This reporting requirement applies to all local governments and public authorities under G.S.

NEUs and ARPA Funds

LGC staff have received a number of questions from non-entitlement units (NEUs) on ARPA funding such as when funds will be distributed and for what purposes they can be used.  NCPRO has put together an excellent set of videos to answer these questions and more.  In addition, Kara Millonzi from the SOG has posted a detailed blog that walks you through the steps of determining a unit's lost reven

ARPA Regional Information Sessions for Local Governments

An informational session about the American Rescue Plan will be held featuring remarks from Governor Roy Cooper, followed by presentations and Q&A from state agencies and organizations supporting local governments.

Compensated Absences Exposure Draft

LGC staff reviewed the proposed guidance contained in the Compensated Absences Exposure Draft published by the GASB Board in February 2021 and provided the comments below to the Board and to the Technical Director. We urge NC local governments to pay attention to the GASB project schedules and provide comments as requested by the Board whenever time and resources permit.   

ARPA Webinar with NCLM, NCACC, and DST

Join the North Carolina League of Municipalities and the NC Association of County Commissioners for a Q&A session with the N.C. State Treasurer's office staff about the ARP funding for local governments. The webinar will discuss the specifics of accounting for American Rescue Plan funds for local governments.

New ARPA Guidance and Resources for Local Governments


For those of you that are members of GFOA, they have a new revenue replacement calculator to assist you in calculating the amount of lost revenue you can replace with ARPA funds.  It is behind their paywall so available only to members. Log in at to check it out.