North Carolina SB 1013: Cherry Farm/Dairy Facility Funds.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 2
SENATE BILL 1013
State and Local Government Committee Substitute Adopted 6/17/26

Short Title: 2026 Office of the State Auditor Agency Bill.-AB (Public)
Sponsors:
Referred to:
May 4, 2026
*S1013-v-2*
A BILL TO BE ENTITLED 1
AN ACT TO MAKE VARIOUS CHANGES FOR THE OFFICE OF THE STATE AUDITOR. 2
The General Assembly of North Carolina enacts: 3
SECTION 1.(a) G.S. 147-64.6 reads as rewritten: 4
"§ 147-64.6. Duties and responsibilities. 5
... 6
(c) Responsibilities. – The Auditor is responsible for the following acts and activities: 7
... 8
(3) The Auditor, on the Auditor's own initiative and as often as the Auditor deems 9
necessary, or as requested by the Governor or the General Assembly, shall, to 10
the extent deemed practicable and consistent with the Auditor's overall 11
responsibility as contained in this Article, make or cause to be made audits of 12
all or any part of the activities of the State agencies. Each State agency 13
receiving a financial statement audit by the Auditor under this subdivision 14
subsection shall prepare a and submit financial statement statements and 15
supplementary information in the format required by the Auditor. Financial 16
statements and supplementary information prepared as required by this 17
subdivision shall be completed and submitted to the Auditor not later than 60 18
days after the deadline for the State agency's Annual Comprehensive Annual 19
Financial Report submission as established by the State Controller. 20
... 21
(5) The Auditor may contract with federal audit agencies, or any governmental 22
agency, on a cost reimbursable basis, for the Auditor to perform audits of 23
federal grants and programs administered by State agencies in accordance 24
with agreements negotiated between the Auditor and the contracting federal 25
audit agencies or any governmental agency. In instances where the grantee 26
State agency subgrants these federal funds to local governments, regional 27
councils of government, and other local groups or private or semiprivate 28
institutions or agencies, the Auditor may examine the books and records of 29
these subgrantees to the extent necessary to determine eligibility and proper 30
use in accordance with State and federal laws. 31
The Auditor shall charge and collect from the contracting federal audit 32
agencies, or any governmental agencies, the actual cost of all the audits of the 33
grants and programs contracted by the Auditor to do. Amounts collected under 34
these arrangements shall be deposited in the State Treasury and be budgeted 35
in the Department of State Auditor and shall be available to hire sufficient 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 1013-Second Edition
personnel to perform these contracted audits and to pay for related travel, 1
supplies, and other necessary expenses. 2
... 3
(11) The Auditor shall, through appropriate tests, satisfy himself or herself 4
concerning the propriety of the data presented in the Annual Comprehensive 5
Annual Financial Report and shall express the appropriate auditor's an audit 6
opinion of it in accordance with generally accepted auditing standards. 7
... 8
(13) At the conclusion of an audit, the Auditor or the Auditor's designated 9
representative shall discuss the audit with the official whose office is subject 10
to audit and submit necessary underlying facts developed for all findings and 11
recommendations that may be included in the audit report. On audits of 12
economy and efficiency and program results, the auditee's written response 13
shall be included in the final report if received within 15 to 30 days from 14
receipt of the draft report. The length of time shall be determined by the 15
Auditor and shall be commensurate with the number and complexity of the 16
findings. 17
... 18
(25) The Auditor may elect to be exempted from oversight by the Department of 19
Administration on the matters of purchasing, contracts, acquisition and 20
maintenance of real property, and leasing of office space under 21
G.S. 143-341(2), (4)d. and d1., and (8)d. and Article 6 of Chapter 146 of the 22
General Statutes. This election shall be made in writing by the Auditor and 23
shall be sent to the Secretary of Administration. 24
(26) The Auditor may enter into an agreement with the Conference of District 25
Attorneys to assign resource prosecutors under G.S. 7A-415 to matters 26
referred by the Auditor to district attorneys. A resource prosecutor working 27
under this agreement may do all of the following: 28
a. Handle financial crimes and any criminal matters that result from an 29
investigation conducted by the Auditor. 30
b. Assist the Auditor and Auditor's staff in criminal matters. 31
c. At the request of a district attorney, prosecute criminal matters that 32
result from an investigation by the Auditor. 33
d. Perform other duties assigned by the Executive Director of the 34
Conference of District Attorneys. 3