North Carolina HB 593: JCPC/Detention/CAA and Other Fees.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 593

Short Title: Local Government Audits. (Public)
Sponsors: Representatives Winslow, Warren, Balkcom, and Ross (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
April 1, 2025
*H593-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE PROCESS BY WHICH UNITS OF LOCAL GOVERNMENT, 2
PUBLIC AUTHORITIES, AND LOCAL SCHOOL ADMINISTRATIVE UNITS SELECT 3
AN ACCOUNTANT TO CONDUCT ANNUAL AUDITS; AND TO APPROPRIATE 4
FUNDS TO THE STATE AUDITOR TO ASSIST LOCAL GOVERNMENTS WITH 5
FINANCIAL RECORD KEEPING. 6
The General Assembly of North Carolina enacts: 7
SECTION 1. G.S. 159-34 reads as rewritten: 8
"§ 159-34. Annual independent audit; rules and regulations. 9
(a) Each unit of local government and public authority shall have its accounts audited as 10
soon as possible after the close of each fiscal year by a certified public accountant or by an 11
accountant certified by the Commission as qualified to audit local government accounts. State 12
Auditor in accordance with subsection (b1) of this section. When specified by the secretary, the 13
audit shall evaluate the performance of a unit of local government or public authority with regard 14
to compliance with all applicable federal and State agency regulations. This audit, combined with 15
the audit of financial accounts, shall be deemed to be the single audit described by the "Federal 16
Single Audit Act of 1984". 17
(a1) The auditor shall be selected by and shall report directly to the governing board.board, 18
but in no instance may the governing board select an auditor not certified by the State Auditor as 19
qualified to audit the accounts of units of local government or public authorities. The governing 20
board shall solicit sealed bids for conducting the audit, which may be done annually but at least 21
once every five years. The governing board shall select an auditor from those sealed bids based 22
solely on cost, expertise, and time for completion of the audit and without information as to 23
identity of the bidder. If upon opening that sealed bid, the governing board determines that the 24
auditor cannot meet the audit schedule of the governing board or has performed inadequately on 25
a prior audit of the governing board, the governing board may reject that sealed bid and solicit 26
sealed bids again in accordance with this subsection. 27
(a2) The audit contract or agreement shall be comply with all of the following: 28
(i)(1) Be in writing, include writing. 29
(ii)(2) Include the entire entity in the scope of the audit, except that an audit for 30
purposes other than the annual audit required by this section should include 31
an accurate description of the scope of the audit, require audit. 32
(iii)(3) Require that a typewritten or printed report on the audit be prepared as set 33
forth herein, include required by this section. 34
(iv)(4) Include all of its terms and conditions, and be conditions. 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 593-First Edition
(v)(5) Be submitted to the secretary for his approval as to form, terms, conditions, 1
and compliance with the rules of the Commission. 2
(a3) As a minimum, the required audit report shall include the financial statements 3
prepared in accordance with generally accepted accounting principles, all disclosures in the 4
public interest required by law, and the auditor's opinion and comments relating to financial 5
statements. The audit shall be performed in conformity with generally accepted auditing 6
standards. The finance officer shall file a copy of the audit report with the secretary, and shall 7
submit all bills or claims for audit fees and costs to the secretary for his approval. Before giving 8
his approval the secretary shall determine that the audit and audit report substantially conform to 9
the requirements of this section. It shall be unlawful for any unit of local government or public 10
authority to pay or permit the payment of such the bills or claims without this approval.the 11
approval of the secretary. 12
(a4) Each officer and employee of the local government or local public authority having 13
custody of public money or responsibility for keeping records of public financial or fiscal affairs 14
shall produce all books and records requested by the auditor and shall divulge such the 15
information relating to fiscal affairs as he the auditor may request. If any member of a governing 16
board or any other public officer or employee shall conceal, falsify, or refuse to deliver or divulge 17
any books, records, or information, with an attempt thereby to mislead the auditor or impede or 18
interfere with the audit, he that individual is guilty of a Class 1 misdemeanor. 19
(b) The Local Government Commission has authority to issue rules and regulations for 20
the