Slightly Modified Daily Deposit Requirement During COVID-19

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Kara Millonzi

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Under state law, all monies collected or received by employees or officials of a local government or public authority (collectively, local unit) must be deposited daily into an official depository or with a properly licensed and recognized cash collection service. G.S. 159-32. A local unit’s governing board may waive the daily deposit requirement until the amount on hand totals at least $500.

In its recent legislative session, the General Assembly granted authority to the Secretary of the Local Government Commission to modify the daily deposit requirement during an emergency declaration issued under G.S. 166A-19.20. See Sect. 4.28(a) of S.L. 2020-3. The Department of State Treasurer posted guidance today on the Secretary’s modification here.

In sum, a local unit should continue to follow the statutory daily deposit requirement if it is able to do so. For local units whose boards have not authorized the $500 exception, “the deposits required under NCGS 159-32(a) are not required to be made daily if it is not possible for a unit to comply due to limitations such as limited staff availability or reduced office hours, but must be made at least weekly. Deposits must be maintained in a secure location and all requirements of 159-32(a) remain in effect other than this modification to the frequency of deposits.” The modification does not apply if the governing board has already authorized the $500 exception.

Note that the authorized modification¬†“remain(s) in effect until Executive Order No. 116 [emergency declaration for COVID-19] is rescinded or is otherwise terminated.”

 

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