In North Carolina, the majority of funding (approximately 63 percent in aggregate, according to the 2018 Highlights of the North Carolina Public School Budget) for public school operations derives from the state income tax and sales tax proceeds, as appropriated … Read more

UPDATED August 2018: The legislature made a few changes to the System Development Fee law during the 2018 legislative session (S.L. 2018-34). For information on those changes, click here. Local governments and public authorities (collectively, local units) that own or … Read more

The preaudit is a statutory internal control process to ensure that public funds are spent appropriately. If implemented properly the preaudit can be an effective tool in preventing and/or mitigating employee mistake, misappropriation, and even fraud. The problem with the … Read more

Recent high-profile examples of alleged misappropriation and embezzlement of public funds, and other fraudulent activity, by local government officials across the state should prompt all local governments to examine their internal control systems. Internal controls are processes designed to safeguard … Read more

UPDATED Spring 2021: In S.L. 2020-61, the legislature made changes to collection timing, as discussed here, and expanded the purposes for which SDFs assessed using the combination approach may be expended (see below).  UPDATED August 2018: The legislature made a … Read more

For many this is the season of giving. In that spirit, this post addresses frequently asked questions about donations to local governments.

UPDATE 4 August 2018: Overruling the court of appeals, the North Carolina Supreme Court held that the Town of Carthage’s liability to refund the unlawful impact fee revenue was subject to a 3-year statute of limitations. See Quality Built Homes … Read more

In 2015, the legislature made a few significant changes to municipal service district (MSD) authority. (Those changes are summarized here.) The legislature made additional amendments to the MSD statutes this year. See S.L. 2016-8. To summarize, the amendments first require … Read more

Municipalities and counties are authorized, but not required, to provide utility services to properties that lie beyond their territorial borders. See G.S. 160A-312; G.S. 153A-275; see also City of Randleman v. Hinshaw, 2 N.C. App. 381 (1968) (“A [local government] … Read more

A provision in the state budget, Section 7.17 of S.L. 2015-241, set new transparency requirements related to certain financial data of state agencies, counties, municipalities, and local school administrative units. The law mandates full compliance by April 1, 2016. But … Read more