(Raleigh, N.C.) – State Treasurer Dale R. Folwell, CPA announced today that Jonathan J. Vitello, CPA has joined the N.C. Department of State Treasurer (DST) as head of Internal Audit. Vitello was most recently an auditor with RSM US LLP and KPMG LLP in Raleigh, providing audit and accounting services for financial institutions, commercial clients, colleges and universities. A graduate of North Carolina State University and the University of North Carolina-Chapel Hill, he brings a wealth of knowledge to the position.
Vitello will be responsible for the direction and management of the internal audit and compliance team, providing the state treasurer with independent, objective assurance of the adequacy of business controls and the effectiveness and efficiency of operations within DST.
“We are pleased to have Jon join us at the Department of State Treasurer," said North Carolina State Treasurer Dale R. Folwell, CPA. “Internal Audit is an integral part of our focus on providing efficient and prudent management of state-held assets. As a Certified Public Accountant, Jon brings a skill set that will be invaluable in helping us achieve that goal."
In a related announcement, a recent audit of the DST financial statement by the Office of State Auditor (OSA) had no findings. This evaluation comes as DST has successfully implemented multiple new Government Accounting Standards Board (GASB) standards for the state's investments and pension plans over the last five years. In addition, new GASB standards are also being implemented for the state's Other Post-Employment Benefits (OPEB).
GASB is an independent private-sector organization that establishes accounting and financial reporting standards for U.S. state and local governments that follow Generally Accepted Accounting Principles (GAAP). Rating agencies rely on GASB standards as applied to pension valuations and OPEB liabilities to accurately measure states' financial viability. New standards have focused on consistency for financial reporting on the fair value of investments and recoding of pension liabilities on the balance sheet.
DST has worked closely with OSA and the Office of the State Controller (OSC) to make sure that appropriate accounting policies like new GASB standards are adopted. The most recent audit confirms that DST has effectively applied those standards.
“There have been no findings from OSA in the department's financial statements since 2011," said Treasurer Folwell. “This is a great tribute to the leadership and employees in our Financial Operations Division and the professionals at State Auditor Wood's office and OSC. As keepers of North Carolina's public purse, which is the 26th largest pool of public money in the world, we consider both OSA and OSC to be integral to our success. And when we succeed the legislature succeeds, the governor succeeds and, most importantly, the people of North Carolina succeed."
The Financial Operations Division (FOD) is responsible for Banking, Accounting, and Procurement and Contracting for the Department of State Treasurer. FOD is responsible for properly accounting for and reporting on all funds that are deposited, invested and disbursed through the Department of State Treasurer. FOD Accounting handles Departmental Accounting (functions for the department), Investment and Banking Accounting, State Debt Accounting, State Health Plan Accounting, Retirement Accounting (Pension and Supplemental Retirement Plans) and Escheat Accounting. FOD performs the State Treasurer's role of serving as the state's banker and ensures that efficient banking services are provided to all state agencies and institutions.