NOTE: Review the Audit Deadlines for Units Seeking LGC Approval of Debt (read more).
Common Accounting and Reporting Tips
​Based on the 2014 audit reviews and questions directed to our staff, we want to address the following reporting issues to all local government auditors and finance officials. 

We believe these items will impact the audit and preparation of financial statements for the fiscal year ended June 30, 2015. 

Please refer to our Sample Financial Statements (Carolina County, City of Dogwood, or any of the other statements relevant to your unit) for more details.

1.    Most Common Errors
  • Please make sure the financial statements tie to the notes and the MD&A; we often find last minute adjustments to the statements are not reflected in the notes and MD&A.
  • Please be sure to include all applicable statements and schedules in the completed, audited financial report; on occasion a budget schedule will be missing or a financial plan for an internal service fund will not be included.
2.    New Vehicle Tax Collections

​With the new vehicle tax collection process, units should have a vehicle collection rate close to 100%. If a unit reports a vehicle collection rate of 95% or less, we will ask either the unit or auditor to provide us with more details.

3.    Interfund Activities
  • Interfund Transfers
    • Reimbursement of costs should never be labeled as a transfer. Instead a journal entry should be made, debiting the expense in the fund where the true cost belongs and crediting the expense account where the expense was initially charged (see Memo  #2014-07  for more information).
    • Per §159G-37 units could be ineligible for DENR grants if the unit has transferred funds from the Water and/or Sewer Fund to the General Fund  to support general operations. 
  • Forgiveness of Interfund Loans
    • Sometimes units will provide loans from one fund to another, and at times some units will subsequently decide to write off the loans if repayment is unlikely.
    • If an interfund loan is made with no intention of repayment, then the transaction should be recorded as a transfer from the beginning
    • If loaned funds are not repaid by the end of the fiscal year, then this should be recorded as a transfer for budgetary purposes.
    • If a transfer entry was not made make sure you record either a prior period adjustment or record a transfer in the year the loan was forgiven. 
Audit Manual
Firms Providing Accounting Services
Pension Standard - GASB 73
Pension Standards - GASB 67 and GASB 68
Audit Opinions and Reports
Audit Fees
Single Audit
OPEB Standards - GASB 74 and GASB 75