Fiscal Management monitors fiscal and accounting standards prescribed for local governments and public authorities by The Local Government Budget and Fiscal Control Act and provides guidance in following generally accepted accounting principles.
Assistance is offered to local governments in accounting systems and proper internal controls, cash and investment management, budget preparation, risk management, capital planning, and changes in laws and regulations.
On-site assistance is offered to local governments with regard to financial and accounting systems and management services.
The staff participates in teaching educational programs for local government employees and elected officials as well as their independent auditors.
Financial data from local government audit reports is analyzed, historical data is maintained in computerized databases, and reports are prepared for widespread distribution as a means of assisting with improvement of local government operations.
The staff prepares and distributes annual updates to the N.C. Department of State Treasurer Policies Manual. The policies manual provides guidance to locally elected officials and their professional staff members concerning the proper conduct of a local unit's financial affairs in areas such as budgeting, purchasing, payroll, internal control, cash management, and annual audits.
The staff also prepares and distributes annual updates to the Audit Manual for Governmental Auditors in North Carolina, which serves as a resource for the independent auditors of local governments. It provides illustrative financial statements for municipalities, counties, local boards of education, and other specialized entities. It also includes guidance on how to address certain technical accounting and/or auditing issues. Finally, the manual includes the compliance requirements of various federal and State grant programs for use in conducting annual compliance audits of local units.
The Section is responsible for compliance with arbitrage rebate requirements for all State-issued debt, monitoring investment yields, monitoring penalties in lieu of rebate requirements, preparing monthly status reports on each bond issue, and preparing required federal tax returns. These activities are necessary to ensure that State bonds maintain their tax-exempt status and financing rates are kept as low as possible.