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

Memo Regarding GASB Statement 87

Wednesday, December 2, 2020

An important new memo from LGC staff has been issued related to GASB Statement 87, (Leases). Please see Memo 2021-05 on our Memos webpage.

GFOA Webinar for Elected Officials – December 1

Friday, November 20, 2020

The National GFOA has introduced its first publication of the new Elected Official’s Guide Series to assist local elected leaders in making effective policy. The first book is Understanding the Fiscal Health of your Community. To help introduce the series, and this first book in particular, GFOA is offering a free webinar on December 1, 2020, from 1:00-2:15 PM (EST). The webinar, Prepared Leaders Make Effective Policy: GFOA’s Elected Official’s Guide Series Introduction, will provide 1.5 hours of CPE. We encourage units to share this information with your elected leaders and staff. 

Learn more and register for the webinar here.

COVID-19 Impact Report

Thursday, November 12, 2020

Screenshot of the COVID-19 Financial Impact Report tile on the SLG websiteNorth Carolina Session Law 2020-3, Section 4.29.(a) modified NCGS 159-33.1 and implemented a new reporting requirement regarding the financial impact of COVID-19. The finance officer of each county, municipality, water district or authority, sewer district or authority, sanitary district, and metropolitan sewage district must report the requested financial data to the LGC no later than February 15, 2021 for the period from July 1, 2019 to December 31, 2020.

A list of units subject to the reporting requirement, data that must be reported, and more details can be found on our COVID-19 Impact Report webpage.

LGC staff is currently working on a report template for units to use to submit the required data and will make the template available in early December. Units will need to provide the data requested in the template and email the completed report to LGC Staff no...

2021 Audit Contract Forms and Administrative Code Changes

Tuesday, November 10, 2020

Audit Contract Forms and InstructionsHands of two people sitting in front of computers looking at a sheet with charts and graphs on a clipboard

Audit contract forms for FY2021 audits are now available. Please see our website for:

  • 2021 standard contract form (for all units other than charter schools)
  • 2021 charter school contract form
  • 2021 contract form instructions
  • 2021 amended contract form (no changes from 2020)
  • 2021 amended contract form instructions

The audit contract form provided by LGC Staff is intended to standardize the submission of contract information and reduce the amount of time required for contract review and approval. All auditors and units are encouraged to use the LGC-205 form.  Units and their auditors who use the audit contract form provided by LGC Staff must use the 2021 audit contract forms for all new contracts (regardless of fiscal year).

Since units and their auditors may occasionally need to submit contracts for prior fiscal years, the 2021 contract form includes effective dates for contract items that may not be applicable to audits for prior fiscal...

New Process for Audit Report and Data Resubmissions

Tuesday, October 6, 2020

Beginning with the 2020 audit season, a Resubmission Form (replaces the “Audit Report Reissued Form”) must be submitted for all changes to an audit report, including audits resubmitted due to required corrections listed in the Audit Report Communication (replaces the “White Letter”) OR to the Data Input Workbook submitted with an audit report.  This is a major change from the previous practice and will ensure that the LGC staff has the most current version of the report and data for review, and that the most current version of the audit reports are posted to our website.

Also note that if a previous year audit report has to be resubmitted, the new Resubmission Form must be used.

Detailed information is provided on our Resubmitting Audit Reports and Data webpage.  Please feel free to contact us with any questions at SLGFD@nctreasurer.com or 919-814- 4299.

GASB 84 Implementation

Friday, October 2, 2020

GASB logoThe implementation of GASB 84 and the related changes in GASB 97 will require numerous changes in the fiduciary reporting for North Carolina local governments. With the COVID-19 pandemic, the implementation of GASB Statement 84 was delayed, but NC local governments with June 30 year ends will need to implement the guidance during the fiscal year ending June 30, 2021.

The decisions required to implement GASB 84 and GASB 97 are complex to understand and apply. To assist local governments and their auditors, LGC staff has issued Memorandum 2021-04 with information on the requirements of these statements and resources for implementation.

Debt Application and Audit Deadlines for LGC Meetings November 2020 – February 2021

Thursday, October 1, 2020

Any 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 its 2020 audited financial statements submitted to the LGC staff before the application can go forward.  Below are the deadlines through February 2021.  Deadlines for the remainder of the 2021 calendar year will be posted on our website in the coming days.

LGC Meeting Application Due Date Audit Due Date
11/10/2020 10/6/2020 10/16/2020
12/1/2020 11/3/2020 11/13/2020
1/5/2021 12/1/2020 12/14/2020
2/2/2021 1/5/2021 1/15/2021

 

2020 Annual Financial Information Report (AFIR) Now Available

Wednesday, September 16, 2020

The 2020 Annual Financial Information Report (AFIR) template is now available on our AFIR website along with instructions and other resources for completing and submitting the report. The completed report must be submitted through the U.S. Census State Data Collections website. All North Carolina counties and municipalities are required to complete the AFIR by October 31 of each year.

New for FY2020, the U.S. Census has a NEW URL  https://statecollection.census.gov/. This web address now opens to a “State Data Collections” screen. Here you will select “North Carolina” and click on the “Go” button to access the North Carolina Login website. From there, the website and navigation remain unchanged from previous years.

Screenshot of the State Data Collections log in page

 

North Carolina Administrative Code sets a deadline for the AFIR as October 31 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. However, since the deadline for the submission of...

2020 Financial Reporting Checklists for North Carolina Counties and Municipalities

Thursday, September 10, 2020

Box with checkmark2020 Financial Reporting Checklists for both North Carolina counties and municipalities now available on our Financial Statement Resources web pages:  Municipalities and Counties. These checklists may be useful to you as you prepare 2020 financial statements and audit reports required annually by North Carolina  General Statutes.

Please note that the Financial Reporting Checklists for Charter Schools is currently being updated for 2020 and will be coming soon. 

Collateralization of Public Deposits and Pooling Bank List as of June 30, 2020

Thursday, September 3, 2020

Memorandum #2021-03: Collateralization of Public Deposits and Pooling Bank List as of June 30, 2020, is now available on our Memos webpage. Please note that this will be the last publication in memo form of the pooling bank list and the collateralization requirements for local governments. The pooling bank list is updated quarterly by the Financial Operations Division of the Department of State Treasurer and can be accessed HERE at any time. In addition, the Collateralization of Public Deposits webpage provides all the most current information regarding the methods of collateralization and other resources.