The Balance Sheet

Person holding mobile phone with the word "Blog" on it and some other text. Laptop open in the background.

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.

Sign Up

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

ARPA Resources

2021 Audit Review Season Reminders

Thursday, November 18, 2021

With the 2021 audit review season, we are continuing our transition to an automated risk-based approach to reviewing your audits. We are experiencing some delays in the 2021 reviews while we implement these changes. We ask for your patience as we transition to the new process.   

Since the last audit review season, we have implemented changes to reflect updates to NC Administrative Code: 

20 NCAC 02 .0508 (Response to the Independent Auditor’s Findings, Recommendations, and Fiscal Matters). This new rule requires units to respond to the LGC with a corrective action plan if a financial performance indicator of concern (FPIC) is identified or if the audit included one or more significant deficiencies, material weaknesses, or other findings.   

Question 975 on the 2021 Unit Data Input Worksheet confirms if financial performance indicator(s) were identified. If “yes”, a follow-up Question 976 asks if the indicator(s...

Premium Pay Program Checklist 

Monday, November 8, 2021

The UNC School of Government has published a checklist for local governments to use when considering use of ARPA funds for premium pay. We strongly encourage you to review this checklist before making payments to employees. You can access the checklist here.   

2022 Debt Application Due Dates

Friday, November 5, 2021

A unit of government with a June 30 fiscal year end that is seeking debt approval in November or a later month will need to have the fiscal year 2021 audited financial statements and other documents submitted to the LGC staff before the application can proceed.  Below are the deadlines for calendar year 2022. 

LGC Meeting Date Application Due Date Audit Due Date Response Letter Due Date (if applicable)*
November 2, 2021

October 5, 2021

October 15, 2021
(June 30, 2021 audit)
December 7, 2021 November 9, 2021 November 19, 2021
(June 30, 2021 audit)
January 11, 2022 December 7, 2021 December 10, 2021 December 10, 2021
February 1, 2022 January 4, 2022 January 14, 2022 January 14, 2022
March 1, 2022 February 1, 2022 February 11, 2022 February 11, 2022
April 5, 2022 March 8, 2022 March 18, 2022 March 18, 2022
May 3, 2022 April 5, 2022 April 14, 2022 April 14, 2022
June 7, 2022 May 3, 2022 May 13, 2022 May 13, 2022...

FY 2021 Audit Report Due Date

Friday, October 29, 2021

Many of you have been asking about audit due dates, extensions, and amended contracts. If you have a June 30 fiscal year end, the due date for your audit report is October 31. We do not offer extensions for that deadline.

However, we do provide a grace period beginning November 1 through December 1, during which you may submit your audit report without being required to submit an amended audit contract to the LGC. Please note that the amended contract grace period is for LGC purposes only; you or your auditor may choose to pursue an amended contract at any time.

Filing an amended contract does not extend the due date of the audit report and the audit report is still considered late if received after October 31; the amended contract is only a means of communicating a revised expected completion date or fee between the unit, the auditor, and the LGC.

Entities with June 30 fiscal year ends that submit their audits on December 2 or later also must submit an amended contract form to the LGC, explaining why the audit was late and providing a revised completion date and/or fee. An amended contract form and instructions for submitting the form can be found at our “Submitting Your Audit” webpage.

Units with other fiscal year ends have the same four-months-after-fiscal-year-end deadline with the same one-...

2021 Annual Financial Information Report (AFIR)

Thursday, October 21, 2021

Reminder to all counties and municipalities: The 2021 Annual Financial Information Report (AFIR) is now available on the U.S. Census State Data Collections website and on the NC Treasurer AFIR website. Instructions on completing and submitting the AFIR template are available on our website. 

The U.S. Census web address opens to website “State Data Collections.”  Here you will select “North Carolina” to access the North Carolina Login website. 

The AFIR must be submitted by all counties and municipalities; other unit types are not required to submit this report. North Carolina Administrative Code sets a deadline for the AFIR as October 31st of each year; LGC staff cannot extend this due date. Counties and municipalities are encouraged to submit their AFIR by that deadline if their annual audited financial statements are complete. 


Important Memo Regarding Water/wastewater Fund Transfers Now Available

Wednesday, October 13, 2021

Memorandum # 2022-07 has been published to the SLGFD Memos webpage and contains important information regarding transfers you may make from your water/wastewater fund and the possible negative impacts those transfers may have on your eligibility for State funding including SRF, VUR and Possibly ARPA Funds Grants from DEQ. 

Please read the full memo for details and contact us at if you have any questions.  

Delay in ARPA Reporting Deadlines

Monday, October 4, 2021

To all counties and municipalities:

The U.S. Treasury  has delayed the next round (for counties and metro cities) and first round (for NEUs) of reporting for ARPA funds.  The new reporting deadlines are as follows:

  • For counties and metro cities, your next report is due January 31, 2022, for the period ended December 31, 2021
  • For NEUs, your first report is due April 30, 2022, for the period from inception to March 31, 2022

We will share more information as it becomes available.

ARPA Funds and Premium Pay

Thursday, September 30, 2021

If you have questions about using your ARPA money for premium pay, this blog post from Kara Millonzi at the UNC School of Government answers a lot of those questions!

American Rescue Plan Act of 2021 (ARP/CLFRF): Using ARP/CLFRF to Provide Premium Pay for Local Government Employees

Impact of Federal Budget Impass

Wednesday, September 29, 2021

As most of you know, tomorrow is the last day of the federal government’s fiscal year, and no budget or continuing resolution has been approved (as of the date and time of this post) to keep the federal government running. What impact will this have on you as a local government in NC? Below is a list of some of the more common issues locals may face. It is certainly not a complete list!

  • Operations of the USDA may be affected. USDA will likely not be open to issue the revenue bonds to replace any BANS that expire while the operations of the government are shut down,
  • Units waiting on permits from the federal government will be on hold, which may delay projects and financings,
  • Federal funding commitments (grants, program funding, FEMA possibly) will be stalled along with sign-off on payment requisitions from federal funders.

Again, this is only a partial list of potential effects on our local governments. If you believe you are going to have cash flow issues as a result of the pending shutdown, please contact us to discuss. Thanks!

Training Opportunity for Local Elected Leaders – Financial Fiduciary Responsibilities of Local Elected Leaders

Tuesday, September 28, 2021

Thursday, October 14, 2021 from 9AM – 12PM

Virtual presentation via the UNC School of Government

Click here for more information and to register.