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.

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2020 Contract For Auditing Services Now Available - Please Read!

Thursday, October 10, 2019

The 2020 Contract for Auditing Services is now available on our website - access the contract instructions and the actual contract form here

There are some important changes to the contract forms as a result of the 2018 Yellow Book implementation for 2020, and as a result of feedback we received from both auditors and local governments.  Explanations of all the changes can be found in the instructions linked above.  As a result of the significance of the changes, we are asking that all units use the 2020 version of the contract for all 2020 FYE audits.  Typically we have accepted the prior year's contract form; we believe the additional information being requested via the 2020 form is important and necessary. 

In addition, we now have a separate contract form for charter schools, and have eliminated the separate contract form for hospitals.  Please see the website for more information on those changes. 

There also are some changes to the instructions on submitted contracts - please find those ...

Revised Federal Compliance Supplement Issued

Monday, September 23, 2019

OMB has issued a corrected 2019 Compliance Supplement dated August 2019 that replaces the June 2019 edition.  Local auditors should use the August 2019 edition in performing Federal Single Audits for fiscal years ended June 30, 2019.  Auditors and other users of the OMB Compliance Supplement should refer to the four page “Errata Pages" section immediately following the table of contents in the August 2019 edition for the changes made to the June 2019 editions.  OMB has not issued any guidance to auditors that have completed fieldwork or are ready to issue a compliance audit opinion.  To the extent auditors have one of these audits that includes a program that is now being corrected or changed, and are looking for direction, the American Institute of CPAs (AICPA), Governmental Audit Quality Center (GAQC), recommends auditors contact the relevant agency's National Single Audit Coordinator (NSAC) using the contact information in Appendix VIII of the Supplement.

The August 2019 edition of the OMB Compliance Supplement can be accessed here:  https://www.whitehouse.gov/wp-content/uploads/2019/09/2-CFR_Part-200_Appendix-XI_Compliance-Supplement_August-2019_FINAL_v2_09.19.19.pdf

The 2019 August edition issuance follows concerns raised by the AICPA Governmental Accounting and Auditing and reported in a letter to OMB as...

Status of 2019 Illustrative Financials PLUS Illustrative GASB 88

Monday, September 23, 2019

The Fiscal Management staff is working diligently to complete the updated Illustrative Financial Statements for fiscal year ended June 30, 2019.  We anticipate that the implementation of GASB 88, “Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements", is the only significant change we will be making.  This change only impacts the note disclosures. 

We have implemented the GASB 88 changes in the debt notes for both the City of Dogwood and Carolina County Illustrative Statements.  To help you get started updating your notes to your financial statements, we are providing the Carolina County and City of Dogwood debt note revisions with this communication.  To determine how to modify your own government's notes, you will need to refer to the debt documents associated with each outstanding debt issue. If you have questions, we refer you to our Memorandum 2019-08 that is located on our website at https://www.nctreasurer.com/state-and-local-government-finance-division/local-government-commission/memo-document  or the GASB website at https://www.gasb.org/home.  

Free NCDOR Workshops: County & Municipality TR Form Reporting / Sales & Use Refunds and Distributions

Wednesday, August 14, 2019

NCDOR's local government division is presenting the following workshops for county and city finance staff and property tax staff.  Come and learn how your city or county interacts with the Department and about the distributions that you receive.

The morning workshop focuses on forms submitted to the NCDOR Information Unit (TR-1, TR-2, AV-50) to report local property tax values and levies, and will be offered at eight different locations throughout the state (longer description below). The afternoon workshop focuses on Refunds and Distributions, and will be offered at ten different locations throughout the state (longer description below).

The workshops are free, but please let us know that you are coming by registering. Space is limited, so please register as soon as possible. To register, please visit this website, select the location and workshop, and enter your information   https://www.ncdor.gov/news/local-government-workshops. Alternatively, you can also visit www.ncdor.gov then click on “Local Government" then click on “Local Government Workshops"

Locations will be:

Sept 17                 Wilkesboro, NC                 Distribution & refund Workshop Only (afternoon)

Sept 18                 Greensboro, NC                Distribution & refund Workshop Only (afternoon)

Oct 2                      Wilmington, NC...

Memo #2020-01 - Firefighters and Rescue Squad Workers Pension Disclosure Information

Friday, July 26, 2019

Our annual FRSWP memo is now available on our website.  This memo contains the information you will need for your notes disclosures on the FRSW pension plan.  Memorandum #2020-01 can be found here

Trouble Opening Excel Files from SLGFD Website?

Monday, July 15, 2019

Some of you are reporting that when you attempt to open an Excel file from the SLGFD webpages using Internet Explorer that you are being asked for login credentials.  SLG has not put login requirements on any of its files posted on our website. Please try opening the file using another browser - many of our users report that they have no issues opening the files in Chrome or Firefox. If you continue to have issues after trying another browser please let us know. 

June 30, 2019 LGC 203 Forms Now Available

Monday, July 1, 2019
June 30, 2019 LGC-203 and COLL-91 Report forms are now available. Both reports require unit information as of June 30, 2019 and are due by or before July 25, 2019.
 
This page contains:
 
Detailed instructions for the LGC-203 report forms
Memorandum #2019-13 Collateralization of Public Deposits (current list of NC Pooling Banks)
Updated LGC-203 report forms – choose the one that is appropriate for your unit:
LGC 203 EZ Form (Rev. 6-19) – One-page form for units that currently use ONLY pooling banks, NC Cash Management Trust, CDARs or ICS Deposits
LGC-203 Standard Form (Rev. 6-19) – All public schools, public housing authorities and local government units that have deposits in dedicated method banks and/or any additional investments other than those listed on with the NC State Treasurer OR in an investment for which you will need to provide a...

Revised Yellow Book Memo 2019-07 Now Posted

Wednesday, June 12, 2019
Memo 2019-07, originally issued on April 29, 2019, has been revised and reposted.  Additional content, on page 2 and highlighted in yellow, was added to clarify what the auditor can and cannot do if he or she determines that there is no one at the local government client with sufficient skills, knowledge, and experience to oversee the preparation of the financial statements.  We strongly encourage all auditors and units to read this memo carefully and plan accordingly. 
 
James Dalkin, the Director of the Financial Management and Assurance Team at GAO, discussed the 2018 Yellow Book Revisions at our 2019 Government Auditing, Reporting, and Review conference recently.  A video of that, and all other presentations, will be available on our website shortly.  We strongly encourage all auditors that did not attend the conference to view the video of Mr. Dalkin's presentation.  His presentation is the first one of the conference. 
 
When available, the video will be posted here. Scroll down to see the link to the 2019 Government Auditing, Reporting, and Review conference. 

2019 Pension Census Data Attest Sample Now Available

Tuesday, April 30, 2019
The 2019 pension census data attest sample of units selected to have this attest performed this year is now available on our website.  Employer participants in both LGERS and TSERS are selected by the Office of State Auditor (OSA) each year to have an attest prepared by a CPA on the census data for members of the pension plans.  The list of employer participants is posted on our website, along with the detailed memorandum from OSA and an additional memorandum from our staff.  We also have posted the 2018 LGERS and TSERS Employer manuals for your convenience, as these are the manuals covering the period for which the attest is completed (calendar year 2018). 
 
Local units - if you change auditors for this fiscal year, and you have been selected for a pension attest, please remember to inform your auditor. 
 
Auditors - please be sure to check the sample list and confer with your new clients to see if they have been selected.
 
The due date for the attests is October 1, 2019.  Many units and their auditors choose to complete and submit them earlier before they get heavily involved in the year-end audit process. 
 
You can find all of the documents related to the attest process here.  Scroll to the bottom of the page to "...

Common Mistake on 2019 Audit Contracts

Monday, March 4, 2019
Audit contracts for the 2019 fiscal year are rolling in, and we are seeing a number of those contracts being filed with the board approval date omitted.  While the Contract Amendment Form may be submitted without board approval (depending on your contract approval policy), the audit contract itself must be approved by the unit of government's governing body.  This date should be noted on page 7 of the contract under the "Governmental Unit" section.  See the highlighted area in the photo included with this post.
Please contact us with any questions at (919) 814-4299Audit Contract GB Approval.JPG