The Balance Sheet

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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.

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

ARPA Resources

Yellow Book Standards

Tuesday, September 7, 2021

With the inflow and subsequent spending of ARPA funds, more local governments than ever before will be subject to Government Auditing Standards, aka Yellow Book standards beginning in fiscal year 2022 and beyond.  What exactly does that mean and why should you be thinking about this now?  Read our memo to find out – Memorandum 2019-07 2018 Revision – Government Auditing Standards (GAGAS) AKA “The Yellow Book.” 

Local Government Finance Class Starting September 13

Tuesday, August 31, 2021

“Local Government Finance in North Carolina - A Practical Approach,” will be offered online by Central Piedmont Community College starting September 13 and running through December 13. The cost is $125 and registration is available by calling Customer Service at 704-330-4223 or visiting

Our “Training Opportunities” webpage will be updated as more offerings of the course are available. This course is a great opportunity to receive an overview of the basics of local government finance in North Carolina from a very practical perspective.  Refer to the course description, objectives, and overview for more details.  

Important Changes to LGC Oversight of Charter Schools

Friday, August 27, 2021

Under Section 5 of North Carolina Session Law 2021-58 (House Bill 163), charter school audit reports, audit contracts, and audit invoices are no longer required to be submitted to the Local Government Commission (LGC) for review and approval. The LGC no longer has authority or oversight responsibilities regarding these charter school documents and reports. 

Please see Memorandum 2022-05 for important operational details related to this statutory change. 

Important Information Regarding File Uploads

Monday, August 23, 2021

Beginning Monday, August 23, 2021, submissions of audit reports, audit contracts, and audit invoices should be uploaded through our new file portal.

Upload your documents through the LGC File Portal at  

To submit your files: 

  • Click on “Audit” then select the file you are uploading (audit report, auditor communication, or data input worksheet).  


Updated Data Input Workbooks

Monday, August 23, 2021

The data input workbooks that must be completed and submitted with 2021 annual audit reports have been revised and were re-published to the “Submitting Your Audit” webpage at 11:00 a.m. today.  We ask that you re-download the data input workbooks to avoid any issues in the previous versions that were posted to the website.

As always, feel free to contact us at if you have questions or if we can provide any assistance.

Paying Bonuses or Incentives to Employees to Encourage Vaccination

Tuesday, August 17, 2021

UPDATED 8/19/21

Several units have or are planning to initiate programs offering cash bonuses or other incentives to employees to encourage vaccination against the COVID-19 virus. Questions have arisen about these plans as follows:

  • Can we offer such incentives? Generally speaking, yes you can. The EEOC has ruled these incentives are ok if the amounts are not coercive. State law gives cities and counties broad authority to offer fringe benefits to employees (if the benefit is not prohibited elsewhere in the statutes. Such is the case with giving employees free or reduced utility rates.)
  • Can you use ARPA funds to pay for these incentives? As is typical with ARPA money, the answer is “it depends.” There are some scenarios that are likely to be acceptable uses of ARPA funds, and others that may or may not be. Please see Kara Millonzi’s detailed blog post for more discussion on this topic.
  • Are these incentives taxable to employees? We believe they are and should be paid through payroll so that they are subject to the appropriate withholdings and reporting. We are watching for clarification from the IRS on this issue....

ARPA Funding Initial Reporting Requirements

Tuesday, August 17, 2021

The first reporting deadline (to the UST) for ARPA funds is August 31 and it's coming up fast! We have two new resources available for those of you that are required to report.

Reporting is required by the following groups at the local level:

All counties
Metropolitan Cities

Kara Millonzi from the SOG has written a detailed blog post on the August 31 reporting requirements as well as subsequent reporting for counties and metropolitan cities. She also discusses reporting required of NEUs, which is most of our municipalities. Please find that post here.

Also, the UST has released further guidance on how to report – Treasury's Portal for Recipient Reporting. You can find that guidance here.  

PLEASE NOTE:  NEUs are not required to file an interim report – not by August 31, not ever.  You get to sit this one out.  Your first reporting deadline will be October 31, and we will publish guidance as soon as it's available.  ​

Free Webinar – ARPA and Federal Aid for Water Utilities

Monday, August 2, 2021

GFOA will host a free webinar on August 12, 2021, from 1:00 pm-2:15 pm: "Introduction to the American Rescue Plan Act Funds for Water Bill Assistance and Infrastructure Projects." The webinar will feature experts from GFOA and the Environmental Finance Center Network, and will provide an introduction to the American Rescue Plan Act (ARPA), the Low-Income Housing Water Assistance Program (LIHWAP), and Emergency Rental Assistance Program (ERAP). For details and registration, please visit the event webpage.​

Training for Units with Water/Sewer

Tuesday, July 20, 2021

Upcoming training opportunities for local governments that provide water and/or sewer services:

Host: Rural Community Assistance Partnership (RCAP)

Topic: Webinar on Managing Water Loss: The Benefits to Small Communities
Date and Time: July 20, 2021; 2pm-3pm
Location: Virtual

Registration: HERE


Host: Division of Water Infrastructure/DEQ

Topic: Fall 2021 Application Training for Funding Programs
Date and Time: Six dates from July 27 through August 5
Location:  Six sites statewide, space is limited at each location

Registration: Contact Jennifer Haynie at (919.707.9173) with your name, organization, e-mail, phone number, and the location you plan to attend

Details below:

Division of Water Infrastructure Announces Fall 2021 Application Training at Six Sites Statewide July 27 – Aug. 5

(Hendersonville, Valdese, Winston-Salem, Research Triangle Park, Winterville, Pembroke)

The Division of Water Infrastructure in the N.C. Department of Environmental Quality announces training for the Fall 2021...

LGC-203 Report Due July 25

Tuesday, July 13, 2021

Reminder: the LGC-203 Cash and Investments report for the June 30, 2021, reporting period is due on or before July 25, 2021. This reporting requirement applies to all local governments and public authorities under G.S. 159-33 and G.S. 115C-446 but does not apply to charter schools.

All LGC-203 reports are submitted via the LOGOS system. If your unit needs to request new accounts or make changes to access to the system, please email

LGC-203 resources and information are available on our LGC-203 webpage.


  • Questions on the LGC-203 report and submission requirements should be directed to the LGC203 Team.
  • Questions on the LOGOS system or establishing user accounts should be directed to the LOGOS Team.