Bill > H593

This bill modifies the process for local government and school administrative unit audits by establishing new requirements for selecting and conducting annual financial audits. The bill requires local government units and school administrative units to select auditors through a sealed bid process, with selection based solely on cost, expertise, and time for completion, without knowing the bidder's identity. Auditors must now be certified by the State Auditor, and governing boards cannot select an auditor not certified by the State Auditor. The bill introduces stricter accountability measures, including potential withholding of sales tax distributions for units that fail to complete audits within 12 months of their fiscal year end. Additionally, the bill appropriates $3.52 million to the State Auditor to create a financial administration program that will employ 32 finance professionals to help small local governments and public authorities return to compliance, with priority given to those with limited resources. The new audit requirements aim to improve financial transparency, accountability, and oversight of local government and school administrative unit finances, with the provisions becoming effective on July 1, 2025, and applying to audits conducted on or after that date.

Budget and Finance, Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H593