Audit reveals serious budget violations in North Carolina

In a recent government meeting, officials discussed the upcoming approval of financial statements by the Local Government Commission (LGC), expected within the next week. The statements will include comprehensive disclosures regarding assets, liabilities, and fund balances, providing stakeholders with detailed insights into the financial health of the organization.

The meeting also addressed findings from an audit related to internal controls, particularly concerning statutory violations. Key issues highlighted included the late adoption of the 2021-2022 budget, which was not approved before the June 30 deadline, resulting in a violation of North Carolina state law. Additionally, it was noted that there were no budget amendments for the 2020-2021 fiscal year, and expenditures exceeded the approved budget, marking three significant statutory violations.

While the current management was not in place during the period in question, the auditor emphasized the importance of these findings as a means to inform and guide future practices to prevent similar issues. The meeting concluded with a commitment to complete two additional audits during the summer, reinforcing the necessity of timely financial oversight as mandated by state statute.