2021 Audit Process

There are significant changes to the audit report submission process and to the Unit Letter process including important new requirements for auditors and governing boards. This page provides local governments and public authorities, their finances staffs, auditors, and governing bodies with information and resources on these changes.

Feel free to contact us with questions at SLGFD@nctreasurer.com or 919-814-4300.

2021 Audit Process: Video and PowerPoint Presentation

Please take a few minutes to watch the following video explaining changes to the audit review process. The slides that are used in the video are available below.

Audit Process Presentation

Audit Process Presentation (slides)

North Carolina Administrative Code

Please refer to the following rules in North Carolina Administrative Code that are the basis for the changes to the audit review process.

20 NCAC 03 .0502 Audit Contract

20 NCAC 03 .0508 Response to the Independent Auditor’s Findings, Recommendations, and Fiscal Matters

Sample Responses

Under NCAC 03 .0508, if a unit is notified by its independent that the audited financial statements included one or more significant deficiencies, material weaknesses, other findings or if Financial Performance Indicators of Concern were identified, the governing body must develop a “Response to the Auditor's Findings, Recommendations, and Fiscal Matters" signed by a majority of the members of the governing body and submitted to the LGC within 60 days of the auditor's presentation.

To assist units in the transition to this new process, LGC staff has developed sample responses that can be used by governing boards in developing their responses to the LGC.

These sample responses and more details will be posted soon.