When most people hear the title finance officer, they picture someone working on spreadsheets, paying bills, or preparing financial statements. While those tasks are part of the job, the role of a finance officer in North Carolina local government goes much deeper. It is a statutory office with legal responsibility for protecting the public’s money and making sure every dollar is managed according to state law.

This post explains what that means in practice. It looks at the core responsibilities of the finance officer, the basic requirements to serve in the role, and the importance of a strong working relationship between the finance officer and the governing board in safeguarding the unit’s financial health.

The Core of the Job

At its core, the finance officer’s job is about protecting public funds. Local governments and public authorities (collectively “local units”^[1]) collect, hold, and spend millions of dollars on behalf of their communities. The finance officer is the person legally responsible for making sure those dollars are received, recorded, and spent the right way.

State law, specifically, the Local Government Budget and Fiscal Control Act, G.S. Ch. 159, Art. 3, makes certain financial management duties mandatory. A local unit’s finance officer must:

• Establish and maintain the unit’s accounting system in a form that meets legal standards.
• Oversee the receipt and deposit all money that comes into the unit and regularly audit the accounts of other officials or employees who handle funds.
• Preaudit obligations to confirm that money is available and the commitment is lawful before the unit enters into a contract or otherwise legally commits to spend funds. This must be done personally by the finance officer or by a deputy finance officer formally appointed by the board.
• Manage the disbursement process, including approving payments, signing checks, and ensuring no expenditure is made without proper authorization. Like the preaudit, this process can only be performed by the finance officer or a board-appointed deputy finance officer.
• Reconcile bank accounts and other financial records regularly so that the government’s books align with actual cash on hand.
• Oversee debt service obligations, making sure principal and interest are paid on time.
• Manage investments and keep them within the limits of state law.
• Prepare and present financial and compliance reports that give the governing board, auditor, and the Local Government Commission (LGC) a clear and accurate picture of the government’s finances.
• Perform additional duties required by the governing board, LGC, budget officer, or manager. G.S. 159-25; -26; -28; -30; -32; -33; -33.1; -33.2; -34; -36; -37.

These statutory responsibilities are the non-negotiables of the job. They anchor the finance officer’s authority and accountability.

But the statutory directives are only part of what is required. Finance officers must also design and enforce strong internal controls that safeguard public money at every stage — when it is collected, deposited, obligated, and ultimately disbursed. Effective internal controls include separating duties so no single person manages a transaction from start to finish, rotating responsibilities among staff to expose irregularities, and reconciling accounts consistently and promptly. They also involve monitoring cash handling, obligations, and disbursements with clear approval processes, and perhaps most importantly, providing ongoing training, guidance, and oversight to employees so that everyone who touches financial transactions understands both the rules and the reasons behind them. Written policies and procedures are essential, and it often falls to the finance officer to craft, implement, and enforce them.

Another layer of responsibility comes from compliance with grants, contracts, and other outside funding agreements. Many local units rely heavily on state and federal dollars to support programs and capital projects, and those funds often come with strict conditions. The finance officer must ensure that the local unit maintains eligibility for this funding by adopting and enforcing the necessary policies and procedures, tracking expenditures carefully, and coordinating with program managers and department heads. Failing to do so can result in penalties or even the repayment of funds.

Titles for the position may differ (treasurer, finance director, or chief financial officer) but the core responsibility is always the same: ensuring that a government’s finances are lawful, transparent, and accountable. In many units, particularly smaller ones, the finance officer’s work goes beyond financial management. They may oversee budgeting, purchasing, utilities, information technology, or even general administration. The scope of the role can be daunting. Finance officers must balance complex technical requirements, meticulous recordkeeping, and daily operational demands, all while serving as the governing board’s chief advisor on financial matters. They are both specialists and generalists, combining financial expertise with broad organizational knowledge to keep local government functioning effectively.

Legal Requirements to Serve as Finance Officer

The position of finance officer is not just another staff assignment; it is a public office defined by law. To qualify, the individual in this role must:

Be an Employee or Officer of the Local Unit 

The finance officer must always be an officer or employee of the local government or public authority; the law does not allow the role to be contracted out to an outside firm or individual, even to another governmental entity. Eligibility generally is tied to who may serve as the budget officer because, by statute, the duties of the finance officer may be imposed on the budget officer or on any officer or employee eligible to serve in that role. G.S. 159-24; G.S. 159-9.

In counties and municipalities with the manager form of government, the county or city manager automatically serves as the budget officer and may also be appointed as the finance officer. In counties without the manager form, the governing board may assign the duties of budget officer to any other county officer or employee, with two exceptions: the sheriff may never serve, and in counties with a population over 7,500, the register of deeds is also excluded. Even when the county manager serves as budget officer, the finance officer role may still be assigned to another eligible officer or employee.

In municipalities that do not operate under the manager form, the governing board may assign the budget officer role to any city officer or employee, including the mayor, provided the mayor agrees to undertake the duties. However, because the finance officer is likely treated as the head of a department under G.S. 160A-158, the mayor or any council member may serve as finance officer only in municipalities with a population under 5,000.

Public authorities and special districts have broad flexibility. Their governing boards may assign the duties of budget officer or finance officer to the chairperson, another board member, or any officer or employee of the authority or district.

The law also imposes one additional restriction from the Machinery Act: the same person may not serve simultaneously as both tax collector and finance officer without the written approval of the Secretary of the Local Government Commission (LGC). G.S. 105-349(e).

With these exceptions, any individual eligible to serve as budget officer may also serve as finance officer, and the two positions may be combined.

Take an Oath of Office

Article VI, Section 7, of the North Carolina Constitution requires that elected and appointed public officers take an oath of office. (See also G.S. 153A-26 for counties and G.S. 160A-61 for municipalities). The position of finance officer likely qualifies as “public officer” and is thus subject to the oath requirement. This formal step commits the finance officer to uphold the Constitution and laws of the United States and North Carolina, and to faithfully discharge the duties of the office.

Be Bonded

Before assuming office, every finance officer must be bonded. This is not optional. The law requires the individual serving as finance officer to secure a true accounting and faithful performance bond with sufficient sureties in an amount set by the governing board. G.S. 159-29. A position bond is not sufficient because it does not guarantee that a specific individual is covered. The intent of the statute is to protect the unit against losses caused by the acts or omissions of the particular person appointed as finance officer.

By law, the bond must be at least the greater of $50,000 or 10 percent of the unit’s budget, up to a maximum bond amount of $1 million. The governing board has discretion to set the bond amount higher than this minimum if it determines greater coverage is needed, but it may never set the bond amount lower than the statutory threshold. The board is also responsible for paying the premium. If the individual serving as finance officer cannot qualify for the bond, he or she cannot legally assume the office. Once in place, the officer must remain bondable throughout their tenure.

There are additional process requirements for county finance officers. County commissioners must examine the bond annually, record their approval, and ensure it meets all legal standards. G.S. Chapter 58, Article 72. The county commissioners must examine the finance officer bond on the first Monday in December of every year. If the bond is not properly secured or renewed, the office is considered vacant by operation of law.

Finally, if one person serves as finance officer for more than one unit of government or public authority, even on an ex officio basis, the bonding requirement applies separately to each entity. Each local government and each public authority is a distinct legal entity, and each must have its own bond coverage that clearly identifies the separate beneficiaries and meets the statutory minimum for that unit.

Possess Requisite Financial Skills

While the law doesn’t require specific degrees or credentials, the job often demands much more than technical bookkeeping skills. A finance officer must be knowledgeable about state law, generally acceptable accounting principles, public finance practices, and the inner workings of local government. They must combine attention to detail with the ability to see the big picture, anticipate risks, and explain complex financial matters in plain language to board members and the public.

Who Appoints the Finance Officer

Who appoints the finance officer depends on the unit’s form of government. In counties or municipalities without a manager, as well as in public authorities, the governing board itself usually makes the appointment. In counties or municipalities with the manager form, the manager designates the finance officer. In some municipalities, the charter may specifically require the board to make the appointment.

In all cases, the finance officer serves at the pleasure of the appointing authority. That means either the board or the manager has the power to remove or replace the officer if needed.

No Gaps Allowed

One unusual aspect of this position is that the law does not provide for an “acting” or “interim” finance officer. If the finance officer leaves unexpectedly, the governing board or manager must immediately appoint another officer or employee to the role. Without someone formally in place, the unit cannot legally carry out basic financial functions such as paying bills or managing its bank accounts. Whoever is appointed, even on a temporary basis, must fully qualify for the position by being an officer or employee of the unit, securing the required bond, and taking the oath of office. (It is ok for a unit to refer to someone who is temporarily filing this role as acting or interim, as long as that person meets all the criteria for the position.)

Delegating Duties 

Given the breadth of the finance officer’s responsibilities, it is common to assign certain tasks to other staff members, for example, processing payroll, managing receivables, or handling routine deposits. But delegation does not relieve the finance officer of responsibility. Even when duties are assigned to others, the officer remains legally accountable for ensuring that the work is done correctly and in compliance with the law.

Some duties are different. The preaudit of obligations, authorization of disbursements, and signing of checks, for example, may only be performed by the finance officer or by a deputy finance officer who has been formally appointed by the governing board. This safeguard keeps the most critical financial controls tightly held by those legally authorized to exercise them. 

Finance Officers in Small Units

For smaller local governments and public authorities, finding and supporting a qualified finance officer can be a real challenge. Budgets may not justify a full-time position, and it can be difficult to attract or retain experienced staff. The law provides some flexibility, but one requirement never changes: the statutory finance officer must always be an officer or employee of the unit.

In practice, this can work in several ways. A unit may hire someone as a part-time employee to serve in the role. Sometimes two governments even share the cost of the same person, jointly employing them part-time in each unit. In that arrangement, the individual must be separately appointed, bonded, and sworn in for each government.

Alternatively, the governing board may choose to assign the duties to an existing officer or employee. In small towns or authorities, it is not unusual for the clerk, manager, administrator, or another staff member to be designated as the finance officer. In certain circumstances, the board may even appoint a board member to serve in this capacity. Whoever is designated must still satisfy the minimum criteria: being an employee or officer of the unit, taking the oath of office, and securing the required bond.

To supplement this internal appointment, a unit may contract with outside support, such as a Council of Government (COG), a Certified Public Accountant (CPA) firm, or another provider, to carry out much of the technical work. The Local Government Commission (LGC) can even require a struggling unit to contract for such assistance. Outside support can make the work more manageable, but it cannot substitute for the statutory office. The designated finance officer, the employee or officer appointed by the board, remains legally responsible for the accuracy, compliance, and integrity of the unit’s finances.

The Board–Finance Officer Partnership

The role of the finance officer cannot be understood apart from the role of the governing board. The board holds ultimate fiduciary responsibility for the financial health of the unit. The finance officer serves as the board’s statutory partner in carrying out that duty.

Even in counties and municipalities that operate under the manager form of government,  where the finance officer typically reports to the manager, the governing board cannot delegate away its responsibility. Board members should engage directly and regularly with the finance officer. Their ability to make sound policy decisions depends on receiving the officer’s independent reports, asking questions, and hearing unfiltered explanations of the government’s financial condition.

To fulfill this duty, the board must:

• Ensure that the unit has a qualified finance officer at all times.
• Ensure the finance officer has the authority and resources needed to perform the role.
• Receive and review financial reports directly from the finance officer, not just second-hand through the manager.
• Review and respond to the annual audit.
• Create a culture where the finance officer is expected to speak candidly and directly to the board about the unit’s financial health.

The finance officer protects the public’s money, but the board protects the public’s trust. The two roles are inseparable. When they work in concert, the unit is better equipped to meet its legal obligations and maintain the financial stability needed to serve its community well.

^[1] Note that this post covers finance officers who work for North Carolina local governments and public authorities, as defined in G.S. 159-7. There are separate laws and requirements that apply to finance officers who work for local school administrative units and ABC boards.